Critical Metals PLC (LSE:CRTM) has agreed an investment agreement pursuant to its 57% acquisition of Madini Occidental.
The deal to buy Madini Occidental, which is 50%-owned by Critial Metals chief executive Russell Fryer and has a copper/cobalt project located in the Democratic Republic of Congo, was first agreed in May last year for a price of US$750,000.
As part of the new agreement, the London-listed mining and investment company has agreed to pay a success fee of US$305,000 to Madini and make a loan of up to US$200,000 available to fund an exploration drilling program at the Molulu project following the re-admission of Critical’s shares on the London Stock Exchange.
Additionally, it will also make a loan of pre-acquisition costs, which are unstated, available to Madini, according to a statement.
Shares in Critical have been suspended for a year since the deal for the Johannesburg-based Madini was first announced.
Critical Metals added that further details regarding the statement will be put out in a prospectus which will be published in the coming weeks.
As part of the new agreement the success fee must be immediately advanced to Miniere Shaba as a loan to be used to settle the consideration for a 70% stake in AMK, the Congolese company holding the mining licence, with the remaining 30% held by its founding shareholders, being Congolese individuals.