Critical Metals plc / EPIC: CRTM / Market: Main Market

28th March 2024

Critical Metals plc

("Critical Metals" or the "Company")

Interim Results

Critical Metals plc ("Critical Metals" or the Company"), an investment company established to target opportunities in the critical and strategic metals sector, is pleased to announce its interim results for the six-month period ended December 2023.

Highlights

·     Ongoing development of the Group's Molulu project;

·     Exercise of 2,814,286 warrants for proceeds of £195,714;

·     Further development of the Molulu elementary school;

·     First delivery of ore to O.M. Metals;

·     Application for US Government funding submitted;

·     Preparation for OTCQB listing in the US; and

·     Post period, the Company announced the appointment of Mr Gordon Thompson as Non-Executive Director and Chair of the Technical committee.

Russell Fryer, CEO of Critical Metals said: 

"In the six months to December 2023 there were several key milestones reached, perhaps the most rewarding within the period was the progress made with the community, where we were able to work together to provide Molulu's children with their first primary school.

"Operationally, we continued to advance Phase 1 of the drilling campaign achieving some exceptional copper grades from the first hole of the campaign. There is no doubt in my mind about the potential of the Molulu project and the demand for its product, evidence by the interest we received from potential off-take partners during the period, and the subsequent signing of the off-take agreement with OM Metal & Resources S.A.R.L.

"While we faced unforeseen challenges in the latter part of the year, we remain steadfast in our belief in the potential of the Molulu Project and despite experiencing setbacks we are resolute in our commitment to delivering value to our stakeholders going forward."

Chairman's Statement

I am pleased to present interim results for the six-month period ending December 2023. During the period our focus remained steadfast on advancing and identifying key investment opportunities in Africa. As our first investment, I am proud to highlight the continued progress made at the Molulu copper and cobalt project, in the Democratic Republic of the Congo ("DRC"), our first investment.

Our diamond drilling ("DD") campaign at Molulu has advanced with Phase 1 of the programme focussing on the three areas identified by mapping and geophysics analysis completed earlier in the year, and consisting of an initial 1,000 meters of drilling across the oxide zone. This drilling is aimed at increasing the geological understanding of the Molulu Project, and generating additional potential targets, and targeting the delineation of a JORC Mineral Resource Estimate for copper-cobalt mineralisation in the area.

In December, core from the partial Phase 1 drilling programme were analysed using a handheld XRF unit. Out of twenty-four holes drilled, eighteen holes had copper mineralisation.  We are excited about the results to date and will be looking to complete the remaining 1000 meters of the programme as soon as possible. 

During the reporting period we stockpiled copper oxide onsite, attracting several off-take buyers with whom the Company met.  Consequently, and after a series of negotiations in September 2023, the Company signed an offtake agreement with O.M. Metals S.A.R.L. ("O.M. Metals") to purchase the copper ore from Molulu. The offtake agreement was aimed at providing the Company with short-term cashflow for the continued improvement of infrastructure, further exploration activities, and optimise ground operations. One of the conditions of our offtake agreement with O.M. Metals was the use of 40-tonne trucks and after a brief submission period, the necessary permissions to deliver ore were granted.

In November, when copper ore deliveries began, three trucks filled with copper ore were delivered to O.M. Metals. However, the road leading from Molulu to the O.M. Metals processing plant proved to be unsuitable for heavy equipment. Both parties agreed that the road from Molulu to the Mabende village needed to be improved to an all-weather road in order to handle the increased volume of traffic from both the Molulu mine and several local villages.

Despite the temporary delay in ore delivery impacting cash generation, the substantial progress made on road and infrastructure development during this period promises enduring benefits for our company and the surrounding community, ensuring accessibility and fostering long-term prosperity for all stakeholders.

October was a transformative social-licence month for your Company as the Molulu team, with the help of villagers, made bricks from ant hill dirt, created a mud-covered fire kiln to dry and harden the bricks, and finally built a school with two classrooms to provide the first elementary and middle school education for the village children. The school has over fifty students in attendance that are taught by two qualified teachers funded by Critical Metals. Since assuming control of Molulu, the Company has prioritized community engagement and sustainability development initiations.  Critical Metals remains committed to expanding local educational opportunities and where possible will continue to employ local staff. More than 90% of our workforce at the Molulu project are DRC natives.

In early November, two representatives from Washington DC visited the Molulu project to conduct due diligence in preparation of the submission of several funding applications to the USA Government. The USA Government has publicly committed to helping grow the exposure of Western companies in the DRC and your Company plans on pursuing the support of various Western governments.

Grant funding applications with the USA Government sponsored agencies the Development Finance Corporation (DFC) and USAid were lodged while other financing applications by way of USA Government bank loans were prepared for submission post calendar year end. 

To increase the shareholder base and introduce the Critical Metals investment thesis to new investors, an application to list on the OTCQB in the USA was submitted. We hope to be able to update shareholders on the progress of the listing in due course.

Funding for small capitalisation mining companies is often a challenge and the markets unmerciful towards capital raises. Your Company raised a small amount of capital at the year-end that confused the market. This capital raise was supposed to be a larger capital raise and completed before the end of December. Several of the participants wanted the capital raise closed as they have a positive viewpoint on both the Company and price of copper, and the small closing was completed soon after the New Year.

Activities at Molulu and in the DRC in general slowed in December as the Presidential election date of 20 December 2023 came near. Feverish election anticipation was spread throughout the country as opposition candidates positioned themselves for an alternative to the incumbent President. The election was completed without mass public rioting or protests, and post year end, the incumbent President was sworn in on 19 January 2024, again, without any mass protests or voter rioting. The DRC proved to the world that peaceful elections and the democratic process is alive and thriving in the country.

The latter part of 2023 was a challenging period for Critical Metals, and I would like to thank fellow board members Anthony Eastman (who stepped down from the board post period) and Marcus Edwards-Jones for their continued support and guidance.

We will welcome Gordon Thompson to the Board on April 1st, 2024, post period.  Gordon is a highly experienced DRC mining and processing expert. He will add incredible expertise to the upgrading of the oxide and sulphide ore at Molulu, along ideas pertaining to any future processing plant transaction.

In conclusion, we remain optimistic about the future, fortified by the resilience displayed during challenging times, both during and post period. We are positive that the Board's proactive approach to addressing potential disruptions and unwavering commitment to the company's growth strategy will deliver shareholder value in the long term.

Finally, I would like to thank our shareholders who have remained with supportive throughout this recent complex period and look forward to a very successful 2024. 

Russell S. Fryer

Executive Chairman & CEO (Chief Executive Officer)

28 March 2024

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For further information on the Company please visit www.criticalmetals.co.uk or contact: