Critical Metals PLC - Africa-focused natural resources investor - Progresses due diligence to acquire 57% stake in Madini Occidental Ltd, which holds 70% interest in PEPM 14784, or Molulu, mining licence in Democratic Republic of Congo.
Deal worth USD850,000, with USD100,000 to be paid to owners and USD750,000 to be spent on development of project. Deal would constitute reverse takeover, so Critical shares suspended.
"In order to advance certain facility and infrastructural improvements at Molulu, Critical Metals has agreed to advance USD140,000 of the funding by way of a subscription for USD140,000 unsecured convertible notes in Madini Occidental pursuant to an unsecured convertible loan note issued by Madini Occidental for up to USD595,000," company explains.
Critical says convertible loan notes to be used as "working capital to commence remobilisation to mine site and to provide a pre-completion loan to the current owners." The notes are conditional upon Madini Occidental being granted a mining licence lease agreement for Molulu.
Current stock price: suspended at 18.75 pence
By Paul McGowan; paulmcgowan@alliancenews.com
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Critical Metals (CRTM)