Critical Resources Ltd (ASX:CRR) is raising A$1.6 million before costs, with funding to be used for exploration across its international critical minerals portfolio and the continued development of its battery and thermal management technologies.
Professional and sophisticated investors will subscribe for 320 million shares at A$0.005 each, with one free-attaching option for every two shares issued. The options will be exercisable at A$0.008 until April 23, 2028.
The issue price represents a 16.8% discount to CRR’s closing price on August 26 and its 15-day volume-weighted average price of A$0.006.
New Zealand exploration in focus
Critical Resources plans to allocate A$650,000, or 40.6% of the proceeds, to exploration across its projects in New Zealand, Canada, Oman and New South Wales.
New Zealand will be the immediate focus, with follow-up work planned at the Cap Burn Gold Project and further exploration of the Granite Creek tungsten target at Croesus.
The company also intends to progress its Lammerlaw, Tokomairiro and Silver Peaks gold, tungsten and antimony projects.
In Ontario, work will continue across the Northern Prospects of the Mavis Lake Lithium Project, including the Gullwing–Tot corridor, alongside permitting and government engagement.
At Halls Peak in New South Wales, CRR plans to advance land-access arrangements and conduct a low-impact soil geochemistry program at the Mayview antimony prospect.
Technology programs receive further backing
A further A$300,000 will support the company’s emerging battery materials and thermal management businesses.
This includes an approximately A$50,000 contribution to the CSIRO Kick-Start project, as well as licence, patent and technical evaluation costs.
Critical Resources is working with the South Dakota School of Mines & Technology and CSIRO on solid-state battery materials and a solvent- and binder-free battery manufacturing process.
Its second technology stream comprises an exclusive worldwide licence for two-phase cooling technology developed by Singapore’s Nanyang Technological University. Potential applications include cooling CPUs, GPUs, computer chips and lithium-ion batteries in data centres and high-density electronics.
The company noted that both programs remain at an early stage and have not yet been demonstrated commercially.
Directors commit A$475,000
The placement will be completed in two tranches, with the first raising A$1.125 million through the issue of 225 million shares under the company’s existing placement capacity.
The second tranche comprises A$475,000 of proposed director participation, subject to shareholder approval at a general meeting expected in early October.
Non-executive chair Bilal Ahmad intends to invest A$300,000, managing director Tim Wither A$100,000 and non-executive director John Markovic A$75,000.
The remaining A$650,000 of proceeds has been allocated to administration, corporate expenses and working capital.
Next steps
Critical Resources expects to settle the first tranche on September 14 and issue the corresponding shares and options on September 15.
The company will then seek shareholder approval for director participation in early October while preparing the next exploration programs across its New Zealand, Canadian and Australian portfolio.