Critical Mineral Resources PLC (LSE:CMRS) has started trading metals and industrial minerals in Morocco after forming a partnership with a local company.
According to a statement from CMR, the partnership will provide a source of near-term cash flow and profits to support the core mission of acquiring and developing advanced mine development opportunities in Morocco.
Together, the companies will source metal and mineral concentrates and raw ores from Morocco's distinct mining regions and arrange delivery to the customer.
A profit share agreement will see 70% revert to CMR and 30% to the partner.
Profit margins will depend on the type of trading activity CMR added but will range from 3% up to 20%.
Several trades are expected to be delivered over the coming weeks and lead to trading updates later this year and next.
Elsewhere, CMR said it had made headway in its strategy to secure one or more high-quality mine development opportunities but any definite news is unlikely until the first quarter of 2025.
Charlie Long, CMR’s chief executive, added: “Although reaching this milestone has taken longer than expected, we are extremely pleased to be adding a cash-generating business to the company which has the potential to grow into something substantive.
“There are multiple examples of successful trading companies which started similarly.
"The Moroccan mining industry presents a range of specific opportunities based on its natural resources, and the resultant mining and minerals trading activities.
"CMR has the enviable advantage of a COO who is embedded in this sector, someone who has metals trading, mine management, permitting and geological expertise.
“Our new JV partner has a long history of trading in manganese, lead-zinc, barite, speciality metals, oligiste and other industrial minerals.
“Our first trade is likely to involve a speciality metal, although trades in zinc and lead are also being considered.”