CRITICAL Metals has raised £1.5m through a share placing which it said would be used to finance its acquisition of a 57% stake in Madini Occidental.
Madini Occidental holds an indirect 70% interest in the Molulu Project, a copper/cobalt mine in the Democratic Republic of Congo (DRC).
The DRC is the world’s fourth largest producer copper producing 1.6 million tons in 2020 and supplies approximately 60% of the world’s cobalt
Critical Metals said today it intended to bring Molulu back into production in the fourth quarter of this year which would generate near term cash flow.
“I believe the Molulu Project presents a fantastic opportunity to gain near-term exposure to these critical minerals, the global need for which remains clear,” said Russell Fryer, CEO of Critical Metals in a statement.
The Molulu Project is an ex-producing medium-scale copper/cobalt asset in the Katanga copperbelt, DRC, with four pits previously mined by artisanal miners.
The project also has “close proximity” to copper smelters in Lubumbashi and Likasi which would provide processing and selling channels for copper and cobalt production.
Shares in Critical Metals will be re-admitted to the London Stock Exchange after having closed previously at 17 pence per share. In terms of the capital raising, some nine million shares were placed at 20p per share.
The balance of funds raised post the payment for the Madini stake will be used for drilling, mine site upgrades and general working capital purposes, the company said.