Critical Mineral Resources PLC (LSE:CMRS) has signed an exclusive option to acquire Igli, a potentially high-grade silver and copper project in Morocco while bringing in a new strategic partner to provide funding.
Igli is on the same structural corridor as the Tiouit (or Tiwit) and Imiter mines - one of the highest grade and largest silver mines in the world.
CMR has agreed to a sixteen-month exclusive option to carry out geochem, geophysics and drilling before the main acquisition payment.
Sample grades of up to 912g/t silver and 2.97% copper have been found at Igli by CMR while regional geology suggests three potential exploration targets.
Overall, the Igli Project consists of a 10.04 sq km mining licence and an adjacent 5.96 sq km exploration permit (Permis de Recherche) for 16 sqkm in total.
In addition, CMR said it had raised £750,000 through the issue of a convertible loan note to fund the exploration programmes at Igli.
A significant proportion of this investment will come from Prism Group, a Swiss and UAE-based private investment office.
Dominic Traynor, currently non-executive chairman, is also to become CMR’s executive chairman.
Charlie Long, CMR’s chief executive, commented: "We are very pleased to have secured exclusivity and an option over the Igli project as one of the highest-grade prospects we have seen over the last 12 months.
“Its location, directly along strike from Tiwit and Imiter adds to its prospectivity, as does the fact that this part of the Saghro Massif has seen relatively limited exploration and even less drilling or geophysics work over the years.
“We are also encouraged by the multiple targets at Igli namely the vertical shear zones which should have depth extension and the mineralised basalt formation which has the potential to be widespread."
Guy Rothschild, chief operating officer of Prism Group, added: "We are delighted to become CMR's main strategic investor. CMR has a fantastic opportunity in Morocco, and potentially further afield, thanks to management's blend of skills, sector experience and deal flow.
“Although Prism's largest investment is in the financials sector, our shareholders have extensive mining experience, and we also have a strong mining network, including potential co-investors across the GCC and North Africa.”