Critical Metals PLC (LSE:CRTM) has updated investors on progress at the Molulu project, in the Democratic Republic of Congo (DRC), where the company says it is now closing out a “positive and uniquely transformational year”
The company, in a statement, described recent progress at Molulu which is an ex-producing copper and cobalt mine since the readmission of its shares to the London Stock Exchange in September 2022 – following a £1.8mln equity funding at 20p per share.
It is now advancing efforts to re-start the Molulu which is now 70% owned by the company, indirectly, and, in September it met with its local partners in the DRC who hold the other 30%.
In the field, the company noted that geological mapping at Molulu has identified one new copper ore extension in the southern part of the lease area, as well as three existing oxide copper targets close to the surface with average copper grades of 3%.
The company said it has also focused on further understanding the existing copper ore bodies and two cobalt areas, identifying potential drilling areas and other requirements for production.
In November, Critical Metals strengthened its team on the ground with the appointment of a Project Manager and Mine Manager, each with over 30 years' experience in the industry.
Also in November, it signed up a heavy equipment rental contractor to lease the necessary mining machinery, although due to operational failures and unmet deadlines by the original supplier, it has since changed to a new supplier.
Copper ore production is now anticipated in January 2023, although the company sought to reassure investors that this is a minor delay and does not affect its twelve-month production or earnings forecasts.
In December, minority shareholders holding 43% of Madini Occidental agreed to sell their shareholding to Critical Metals for £1.3mln, increasing the company's indirect beneficial ownership in Molulu to 70% from 40%.
Overall, despite facing some challenges, Critical Metals said it has made significant progress at the Molulu Project and is well positioned for future growth.
“The company is extremely thankful to its shareholders that believe in our vision of creating a fully integrated, multi-jurisdictional critical metals production company,” it said. “The company looks forward to updating shareholders and the market again next month.”