Business
Non-dilutive Finance Facility
Non-dilutive Finance Facility.
About this update from Critical Metals Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \nCritical Metals plc / EPIC: CRTM / Market: Main Market\n18 September 2023\nCritical Metals plc\n(\"Critical Metals\" or the \"Company\") \nNon-dilutive Finance Facility\nCritical Metals, a mining company established to acquire mining opportunities in the critical and strategic metals sector and currently developing an ex-producing copper cobalt mine in the Democratic Republic of Congo (\"DRC\"), announces it has signed a US$3 million non-dilutive debt facility with an international financial institution (the \"Facility\"). The funds from the Facility will help the Company to accelerate its mining operations, increase production volumes whilst continuing negotiations with future buyers of copper ore.\nFinance Terms\nThe debt term is for 9 months from the date of execution of the agreement for the first US$500,000 instalment, with a committed further tranche of US$500,000 available at the Company's election following the satisfaction of the funding conditions (being committed sales for the existing stockpiles). The Company also has the ability to request further funds are available up to the maximum utilisation of US$3 million.\nThe Company will pay interest only on the borrowed funds.\nThe key funding terms are:\n- 15% fixed coupon for the term\n- The second tranche is available for 150 days after the first tranche\n- Repayable at any time at the election of the Company\n- Personal guarantee from Russell Fryer by way of the pledge of his ordinary shares in the Company (further detailed below)\n- Grant of 2,000,000 warrants over ordinary shares in the Company (further detailed below)\n- Contains customary covenants and events of default for such project related finance\nThe Board of Critical Metals is keen to emphasize that the Facility is not convertible into ordin...