Critical Metals PLC (LSE:CRTM) has confirmed that its prospectus in respect of the anticipated re-admission of its ordinary shares to trading on the main market of the London Stock Exchange has been approved by the Financial Conduct Authority (FCA) and published by the company.
The prospectus contains details of the company's proposed acquisition of a 57% interest in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project located within Small Scale Mining License 14784 in the Democratic Republic of Congo (DRC).
Critical Metals said it is expected that re-admission and completion of the acquisition will become effective and that dealings in its ordinary shares will commence at 8.00am BST on September 12, 2022, under the symbol CRTM.
The company said the prospectus will be available on the company's website, www.criticalmetals.co.uk, and has been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Critical Metals said it intends to commence production at the Molulu Project before the end of 2022 to provide near-term free cashflow, and this includes a 30-day schedule to repair the mine roads and remobilise the camp following completion.
The company conditionally raised gross proceeds of £1.8mln through a placing of ordinary shares at 20p per share. with one 40p warrant attached, exercisable for 12 months from admission The net proceeds from the placing proceeds together with the company's existing cash resources will be used for drilling, mine site upgrades and general working capital purposes.
Critical Metals said its directors believe the Molulu Project has the potential to become an efficient copper and cobalt producing operation and intend to complete various exploration work and technical studies required to assess its technical and economic viability in conjunction with bringing the Molulu Project into production at the earliest opportunity
In a statement, Russell S. Fryer, chief executive officer of Critical Metals, commented: "I am delighted to be updating shareholders on our acquisition of an interest in the Molulu Project. This represents a tremendous opportunity to take advantage of the growing demand for critical minerals and delivers upon our stated strategies."
He added: "The Democratic Republic of Congo is a country with which the Board is familiar and the 4th largest copper producers in the world. This puts us in an advantageous position given the demands for copper, as a 'critical metal', are ever increasing. Despite the price for copper softening in recent months due to recent global events, what remains clear is how much the world needs copper, as the highly conductive metal is a key component of industrial infrastructure and electric vehicles. In addition, cobalt is highly sought-after by both the aerospace industry and the rechargeable power unit sector.
"As an ex-producing asset in the Katangan Copperbelt, we anticipate the Molulu Project being brought into production again before the end of the year and generate cash flow quickly to fund operations going forward. The proximity to copper smelters will also provide processing and selling channels, negating the requirement for extensive capex to process materials."
Fryer concluded: "I am truly excited about the future of Critical Metals, and whilst we will, in the near term, focus on bringing the Molulu Project into production and proving its resource potential, in the longer term the Directors will also consider other opportunities for acquisitions in the critical metals space. I look forward to providing shareholders with regular updates as we progress to production."