Critical Resources Ltd (ASX:CRR) has completed a placement to raise A$12.5 million from sophisticated and institutional investors at A$0.085 per share.
The funds raised will be used to accelerate exploration and development across the company’s projects, with a focus on the Mavis Lake and Graphic Lake lithium projects in Ontario, Canada and the Halls Peak base metals project in New South Wales, Australia.
“Future development opportunities”
Critical managing director Alex Biggs said: “This capital raise is a step-change for the company in terms of future development opportunities.
“Funds will allow the company to execute its strategy and continue its aggressive exploration activities already underway at Halls Peak in NSW, and furthermore across its newly acquired Mavis Lake and Graphic Lake lithium projects in Canada.
“This level of funding does allow us to fast-track and accelerate our exploration strategies across our projects, which is an exciting value proposition for our shareholders.
“We thank our loyal shareholders for their continued support and welcome our new shareholders.”
Placement summary
The placement will be completed using a portion of the company’s available capacity under ASX Listing Rule 7.1 (15,000,000 shares) and a portion of the available capacity under ASX Listing Rule 7.1A (132,058,824 shares), for a total of 147,058,824 fully paid ordinary shares.
Canaccord Genuity (TSX:CF, LSE:CF) and Sixty Two Capital acted as joint lead managers.
Settlement is proposed for Wednesday 23rd February, with the allotment of shares the following day on Thursday, 24th February.
About Mavis Lake
The Mavis Lake Lithium Project is about 20 kilometres east of the town of Dryden, Ontario.
Permitting for an initial 5,000-metre drill program is underway as well as additional exploration activities.
Early-stage exploration including airborne surveys and field mapping will also be conducted at the recently acquired Graphic Lake Lithium Project, situated about 180 kilometres from Mavis Lake.
Once completed, this work will lead to the development of a maiden drill program at Graphic Lake.
About Halls Peak
The Halls Peak Base Metals Project in NSW is about 45 kilometres southeast of Armidale in the New England Fold Belt, an area well known for its mineral endowment and production.
A current drill program of 4,200 metres is in progress, with another 1,200 metres of drilling recently approved to further test extensional and at depth potential.
Encouragingly, the current drill program has yielded some exceptional results with the plan to further test at depth and extensional potential.