Critical Minerals Group (ASX:CMG) has announced its plan to raise $1.5 million through a two-tranche placement to advance its vanadium strategy.
The company has accepted binding subscriptions for 20.7 million new shares at $0.07 each, representing a 14.71% discount to the last closing price of $0.085 on 17 June and a 20.85% discount based on the five-day volume weighted average price of $0.0916.
Funds will go towards advancing offtake negotiations for vanadium electrolyte supply, commencing Definitive Feasibility Study workstreams for the Lindfield project in Queensland, and progressing front-end engineering design and site selection for a proposed phase one vanadium electrolyte facility.
They will also be used to progress the tenure application for Lindfield West, resource definition activities, and for general working capital.
Tranche one will raise $1.13 million through the issue of 15.6 million shares under the company’s existing placement capacity. The balance of $369,243 will be raised through tranche two, subject to shareholder approval.
CMG notes that directors and executives have agreed to receive up to 1.67 million shares in lieu of cash fees totalling $121,080, also subject to shareholder approval.
Each two new shares will come with one free attaching option exercisable at $0.12 and expiring 30 months from issue, with up to 11.18 million options to be issued subject to shareholder approval.
Harbour City Corporate led the placement and will receive a 6% placement fee plus GST on gross proceeds, alongside broker options on a one-for-one basis for each new share issued.
Managing Director Scott Winter says the placement strengthens the company’s balance sheet and provides flexibility to progress its integrated vanadium strategy.
“The funds will support continued engagement with potential offtake partners, planning for the next phase of development at the Lindfield Vanadium Project, and workstreams associated with the company’s proposed vanadium electrolyte facility,” Winter says.
Settlement of tranche one is scheduled for 26 June, with new shares to be issued on 29 June, ahead of a general meeting planned for 6 August to approve tranche two and the options.
Critical Minerals Group is focused on developing an integrated vanadium supply chain. Its flagship Lindfield Vanadium Project is located in Julia Creek, Queensland.
Write to Paula Fabe at Mining.com.au
Images: Critical Minerals Group
