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Critical Metals PLC said on Wednesday that it had engaged in a fundraise to finance its Molulu copper project and ‘move the company closer to being cash generative’. Critical Metals is the London-based developer and operator of the Molulu copper & cobalt project in the prolific Katangan copper belt in the Democratic Republic of the Congo. The company said it had raised £1.6 million through a private placement of convertible loan notes to both new and existing shareholders. Critical Metals said that the fundraise will allow it to engage in critical developments at the DRC asset. These developments include improving the 17-mile public road to Molulu to facilitate the transportation of copper and cobalt; advancing the initiated phase one drilling plan and programme; creating a block model and mine plan. The amount due under the CLNS will be converted into a corresponding number of new ordinary shares in the company at a conversion price the lower of 4.8 pence per share or a 10% discount to the five-day volume weighted average share price preceding the publication of the secondary prospectus. Critical Metals said that it ‘does not currently have sufficient headroom’ to admit the ordinary shares to be issued on conversion of the CLNs to trading on the Main Market of the London Stock Exchange. Conversion of the CLNs is therefore subject to the company publishing a prospectus approved by the Financial Conduct Authority, and admission of the new shares to the standard segment of the official list of the FCA. Critical Metals Chief Executive Officer said: ‘I am delighted the company has received such strong support from existing and new institutional investors, leading to this placing being oversubscribed. The additional funds will allow the company to significantly progress key items to help resume production and move the company closer to being cash generative.’ Critical Metals shares closed down 7.1% to 4.60 pence each in London on Wednesday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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