Investment company Critical Metals had a “pivotal” six-month period ended December 31, 2022, with shareholder support enabling it to raise the £1.8-million needed to fund its then 57% stake in the Molulu project in the Democratic Republic of Congo (DRC) and ensure its readmission to the main market of the LSE, CEO Russell Fryer says.
As alluded to, Critical Metals was successfully readmitted to trading on the standard segment of the official list and trading on the main market of the LSE.
Over the period, the company cumulatively acquired a 100% interest in Madini Occidental, which holds a 70% interest in the Molulu copper/cobalt project.
Critical Metals raised £1.8-million in conjunction with the readmission to fund the acquisition of Molulu, drilling, mine site upgrades and general working capital.
Early-stage groundwork started to increase the understanding of Molulu and identify further drilling targets in preparation for the next drilling campaign.
The technical team on site was strengthened with the appointments of Lloyd Kirtley as DRC project field manager and John Greef as mine manager at Molulu.
Critical Metals raised an additional £1.3-million and indirectly increased its ownership of Molulu.
Post period, on January 26, the company announced the start of copper production with a forecast of producing about 120 000 t/y of copper oxide ore.
There was, however, a short delay owing to the hold-up in the delivery of key equipment to the site. This is said to be a common problem faced by the industry following the Covid-19 pandemic and more recently the war in Ukraine has put pressure on supply chains.
The company says the start of production comes at an ideal time, with global demand for battery metals such as copper and cobalt likely to continue growing, as producers struggle to match output with demand for industry metals.
“We expect that Molulu will be cash generative during 2023 as we commence sales post the rainy season ending. I remain extremely optimistic and excited about the year ahead and look forward to keeping shareholders informed about the Molulu project and other acquisition targets, as and when these materialise,” Fryer highlights.
Looking ahead, the company says it will continue to support the development of Molulu and will continue its search for new investment opportunities that the board believes have the potential to be lucrative for the company and its shareholders.