Business
Proposed Acquisition: Advancement of Funds via CLN
Proposed Acquisition: Advancement of Funds via CLN.
About this update from Critical Metals Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7430P\n Critical Metals PLC\n 21 October 2021\n \n \n \n \n Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector: Closed End Investments\n \n \n 21 October 2021\n Critical Metals plc\n (\"Critical Metals\" or the \"Company\")\n \n \n Proposed Acquisition of DRC Copper/Cobalt Project:\n \n Advancement of Funds via Convertible Loan Note\n \n Critical Metals plc, a mining investment company established to target near-term, low-capex production opportunities of critical metals which have been identified as playing a strategic role in economic and technological development, as well as national defence and aerospace applications, today provides an update on its proposed acquisition, as announced on 20 May 2021.\n Critical Metals is seeking to acquire a majority stake in Mauritius-incorporated Madini Occidental Ltd (\"MO\"), which will, on completion of the acquisition, have an indirect 70% beneficial interest in a 'Small Scale Mining License' (\"Permis d'Exploitation de Petit Mine\") PEPM 14784, in the Democratic Republic of Congo (\"Molulu\" or the \"Project\") (the \"Proposed Acquisition\").\n Molulu is a copper/cobalt project located on the Katangan Copperbelt, adjacent to several medium and large-scale producers.\n All workstreams continue to advance in relation to due diligence and application for readmission to trading on the Standard List (\"Readmission\"), including the preparation of a Prospectus.\n As previously announced, the Proposed Acquisition is expected to be made via an acquisition of ordinary shares in MO to the value of US$850,000 (the \"Funding\"). In addition, two loans of US$150,000 and US$200,000 are expected to be made available to MO on terms to be agreed, with the former to be advanced to the current owner of the Project on terms to be agreed and the latter is to be used to fund an exploration drilling program to enable a JORC compliant resource to be created.\n In order to advance certain facility and infrastructural improvements at Molulu, Critical Metals has agreed to advance US$140,000 of the Funding by way of a subscription for US$140,000 unsecured convertible notes in MO (the \"Advanced Funding\") pursuant to an unsecured convertible loan note issued by MO (the \"MO CLN\") for up to US$595,000. \n \n The US$140,000 from the MO CLN w...