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Critical Metals publishes prospectus ahead of LSE listing

25th September 2020

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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Investment company Critical Metals, on September 24 published a prospectus which has been approved by the Financial Conduct Authority (FCA) relating to the admission of 30.3-million ordinary shares of £0.005 apiece to listing on the standard segment of the official list of the FCA and to trading on the main market of the LSE.

Critical Metals is an investment company targeting the acquisition or acquisitions of equity interests and debt interests within the natural resources development and production sector in Africa.

Critical Metals plans to build a profitable mining company by identifying the investment gaps in the small mine market on the continent of Africa, primarily in the critical and strategic metals space where supply/demand fundamentals are forecasted to continue to improve as critical raw metals play an increasingly important role in economic and technological development.

The rising demand for critical raw materials needed for renewable energy technologies and electric-mobility is evident, says the company.

As such, Critical Metals notes that the European Commission recently expanded its list of critical metals from 27 in 2017 to 30.

The list now also includes lithium, with estimates suggesting that the European Union (EU) will need 60 times more lithium for electric vehicle batteries and energy storage by 2050.

EU demand for rare earths, used in high-tech devices and military applications, is also predicted to increase tenfold in the same period. Significantly, the Covid-19 pandemic has revealed how deeply global supply chains can be disrupted in a short space of time, and the importance of ensuring resilience through a secure and sustainable supply of critical raw materials.

Critical Metals’ initial focus will be on small to medium-sized known deposits as opposed to exploration, as well as projects with low entry costs and the potential to generate near-term cash flow.

In addition, £800 000 was raised, conditional upon admission of Critical Metals to the FCA list and LSE listing, pursuant to a placing of 16-million ordinary shares at price of 5p apiece.

The £800 000 is for initial working capital requirements while it seeks out initial investments, which will likely include a majority interest in one or more.

Following the issue of the placing shares, which represent about 112% of Critical Metals’ existing issued ordinary share capital and about 53% of the issued share capital of the company as enlarged by the placing, Critical Metals will have 30.3-million ordinary shares in issue.

Application has been made for the admission which is expected to occur on September 29.

Critical Metals’ prospectus has been made available on the company's website and will also be submitted to the National Storage Mechanism and should be available shortly for inspection.

Critical Metals CEO Russell Fryer says the publication of the company’s prospectus marks the next step in Critical Metals’ listing process.

“I believe we have an opportunity to take advantage of the growing demand for critical metals by identifying near-term brownfield, cash flow deposits and bringing them into production.

"We have an experienced team with a successful record of similar transactions and look forward to becoming a public company and accelerating our ambitious growth plans.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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