Critical Mineral Resources plc has raised £900,000 for the newly signed exclusive option to acquire the high-grade copper-silver Igli project in the Anti-Atlas, Morocco.
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A total £750,000 was raised yesterday through the issue of a convertible loan note, of which a “significant” proportion will come from Swiss and UAE-based Prism Group AG.
The company today raised a further £150,000 through the same convertible loan note issue, taking the total to £900,000.
CMR executive chairman Dominic Traynor is a director of Prism.
The company said that Igli was strategically located on the same structural corridor as the Tiouit (Tiwit) mine and Imiter mine – one of the “highest grade and largest silver mines in the world”.
Returned grades from channel sampling and stockpiles sampling include up to 912g/t silver and 2.97% copper.
The company has a 16-month exclusive option to carry out geochem, geophysics and drilling before main acquisition payment.
Three suggested potential targets are higher grade sub-vertical shear zones, lower grade basalt formation, and deeper basement hosted shear zones, as found at Tiwit and Imiter mines 6.5km and 25km along strike.
Igli consists of a 10.04km2 mining licence and an adjacent 5.96km2 exploration permit, for a total 16km2.
“The option for such a prominent asset represents a significant milestone for the company,” added CMR.
“It underscores its considerable momentum in Morocco, where it has become the partner of choice for development assets after accumulating an extensive Moroccan portfolio with multiple commodities critical for Western economies and the energy transition.”
Chief executive Charlie Long said that Igli was one of the highest grade prospects the company had seen over the last 12 months.
“Its location, directly along strike from Tiwit and Imiter adds to its prospectivity, as does the fact that this part of the Saghro Massif has seen relatively limited exploration and even less drilling or geophysics work over the years.
“We are also encouraged by the multiple targets at Igli namely the vertical shear zones which should have depth extension and the mineralised basalt formation which has the potential to be widespread.”
Acquisition terms include US$12,000 cash payment for two months exclusivity, until 13 September, to undertake due diligence.
The agreement carries subsequent payments until CMR exercises the option.
Excluding the initial $12,000, total costs are $790,000 for 90% of the property and $1,290,000 for 100%.
Stock warrants are attached to the CLNs with a ratio of one warrant for every two shares representing the principal amount of the CLNs. The warrants have an exercise price of 1.30p.
Prism’s largest investment is in the financials sector although its shareholders have “extensive” mining experience.
The investor also has a “strong mining network” including potential co-investors across the Gulf Cooperation Council (GCC) and north Africa.
Founded in 1981, the GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
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