Critical Metals PLC Company Update (2367E)
10 March 2022 - 3:35AM
UK Regulatory
TIDMCRTM
RNS Number : 2367E
Critical Metals PLC
09 March 2022
Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector:
Closed End Investments
9 March 2022
Critical Metals plc
("Critical Metals" or the "Company")
Company Update
Critical Metals plc, a mining investment company established to
acquire mining opportunities in the critical and strategic metals
sector, is today providing an update regarding its proposed
acquisition of a majority interest in the copper/cobalt project
located within Small Scale Mining License PEPM 14784 in the
Democratic Republic of Congo (the "Molulu Project") (the "Proposed
Acquisition").
The Board, alongside the Company's advisers, has been focussed
on progressing the Proposed Acquisition, including completing the
requisite due diligence, corporate structuring, and preparation of
the documentation associated with the Proposed Acquisition and
Reverse Takeover process under the FCA's Listing Rules.
The Board is cognisant of the frustrations of shareholders to
the time it is taking to finalise the Proposed Acquisition. The
Company has experienced unexpected delays in a large part to the
asset being in a non-English speaking jurisdiction, which is
therefore inherently more time consuming and often complex. As we
have noted before, the management team and legal advisors in four
different jurisdictions, are ensuring all agreements are prepared,
and are in compliance with, the new Mining Code of the DRC that was
announced in November 2021.
The Company has sufficient cash reserves and as of 31 December
2021, had GBP1,069,770 in net cash and GBP23,686 in total
liabilities. Many of the legal, accounting, and advisor costs
associated with this transaction have already been paid by the
Company prior to the 31 December 2021 year end.
All key advisers continue to advance workstreams in relation to
due diligence and application for readmission to trading on the
Standard List, including the preparation of a Prospectus, is at an
advanced stage. A Competent Persons Report has been prepared in
respect of the Molulu Project and the audit and conversion of the
last three years of Madini Occidental Ltd accounts into an IFRS
compliant format is progressing.
For clarification, the Company confirms that following the FCA's
Listing Rule changes that became effective 3 December 2021, it has
until 4:00pm on 1 December 2023 to complete a transaction that is
under a GBP30 million market capitalisation on admission.
The Board remains of the view that, despite these delays, the
Proposed Acquisition represents an excellent opportunity to acquire
a controlling interest in a highly prospective copper/cobalt
project, which has previously been in production and can be quickly
brought back into operation to generate near-term free cashflow, in
particular in the current commodity environment.
The Board looks forward to providing further updates in due
course.
**ENDS**
For further information on the Company please visit
www.criticalmetals.co.uk or contact :
Russell Fryer Critical Metals plc Tel: +44 (0)20 7236 1177
Rory Murphy / Strand Hanson Limited Tel: +44 (0)20 7409 3494
James Bellman Financial Adviser
Lucy Williams Peterhouse Capital Limited, Tel: +44 (0)20 7469 0936
/ Corporate Broker Tel: +44 (0)20 7469 0933
Duncan Vasey
Catherine Leftley St Brides Partners Ltd, Tel: +44 (0)20 7236 1177
/ Oonagh Reidy/ Financial PR
Isabelle Morris
About Critical Metals
Critical Metals was formed as an investment company and intends
to make equity investments into operators or near-term production
operators within the natural resources development and production
sector in the continent of Africa. It is envisaged that such
acquisition or acquisitions will trigger a reverse takeover in
accordance with the listing rules. The Company intends to search
initially for acquisition opportunities in the natural resources
sector on known deposits and more specifically minerals that are
perceived to have strategic importance to future economic growth.
Commodities such as antimony, beryllium, cobalt, copper, fluorspar,
gold, rare earth elements, tin, tungsten, titanium, and vanadium
have been identified by several governments as "critical minerals"
and so guaranteeing supplies is seen as a strategic necessity. The
Company therefore believes that the market conditions for these
minerals will remain strong in the short-to-long term.
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END
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