Critical Mineral Resources plc has secured a £2.5 million investment from Gilini Holdings Ltd to advance its activities in Morocco.
OPPORTUNITIES
The funds will be used to acquire more projects, expand CMR’s commodities trading venture, progress its existing Morocco portfolio and for general working capital.
Of the total investment, £2,075,000 has an average purchase price of 1.48p per new ordinary share.
CMR has already received £425,000 by way of the first tranche of loan notes, convertible into ordinary shares of the company at £0.011 per share, maturing on 31 December 2028.
The CLNs have 15% interest per annum, which accrues, and one warrant for every two ordinary shares represented by the principal amount of CLNs.
Each warrant is exercisable at a price of £0.013 until 31 December 2028.
The first tranche also replaces the £500,000 from the July 2024 CLNs, of which £425,000 is undrawn.
The second tranche of £1,325,000, expected in Q2 2025, will comprise an £825,000 subscription for new ordinary shares at a price of 1.45p, and £500,000 via a second loan instrument, convertible at 1.45p with 5% accruing interest.
The third tranche of £750,000 is due during Q1 2026 by means of a subscription for new ordinary shares at a price of 1.53p.
CMR said that the subsequent finance was contingent on the company entering into a formal agreement on one or more development projects in Morocco, “most likely to be copper or manganese”.
Following issue of the ordinary shares, Gilini’s shareholding will be more than 29.9% which would require them to make a mandatory offer for CMR under the Takeover Code.
CMR added that the ratio of ordinary shares to convertible loan notes under the subscription would be adjusted to prevent the mandatory offer from occurring.
Chief executive officer Charlie Long said that the investment would fund CMR’s activities throughout the remainder of 2025 and beyond.
“The main challenge for junior mining companies is securing sufficient finance to fund exploration and development work, whether on their own assets or as part of an earn-in.
“CMR is now in the excellent position of being well-financed, enabling it to focus on creating value in Morocco and executing on some extremely exciting opportunities.”