Russell S. Fryer, Chief Executive Officer of Critical Metals, commented: The company has reached a milestone with the readmission of the Company to trading following the completion of the acquisition of an interest in the Molulu Project. I believe the Molulu Project presents a fantastic opportunity to gain near-term exposure to these critical minerals, the global need for which remains clear.
This is a very exciting time for Critical Metals and I look forward to sharing regular updates on our progress at the Molulu Project.
I would like to take this opportunity to thank shareholders and prospective shareholders for their patience due to certain time-consuming complexities.
Overview of the Molulu Project
· Acquired a controlling stake of 57 per cent. in Madini Occidental, which holds an indirect 70 per cent. interest in the Molulu Project for a total consideration of US$750,000 less approximately US$129,000 and EUR 33,400, being costs of the target group paid by the Company prior to Admission
· The Molulu Project is an ex-producing medium-scale copper/cobalt asset in the Katangan Copperbelt, DRC, with four pits previously mined by artisanal miners
· The DRC is the world’s fourth largest producer copper producing 1.6 million metric tonnes in 2020 and supplies approximately 60 per cent. of the world’s cobalt
· Critical Metals intends on bringing the Molulu Project into production in Q4 2022, following generating near-term free cashflow
· Proximity to copper smelters in Lubumbashi and Likasi provide processing and/or selling channels for copper and cobalt production
· The Directors believe the Molulu Project has the potential to become an efficient copper and cobalt producing operation and intend to complete various exploration work and technical studies required to assess its technical and economic viability in conjunction with bringing the Molulu Project into production at the earliest opportunity
· Copper is a key commodity required for the global transition to Net Zero, used in wind turbines, electric vehicles, telecommunications and construction sectors
· Copper price has increased from US$2.21/lb to $3.58/lb between August 2016 and August 2022, driven by global economic growth, increasing infrastructure investment and global supply-side deficit