- 01CMG seeks $2.05m to fund Lindfield DFS work.
- 02Funds will support drilling, metallurgical testing and approvals.
- 03Majority shareholder Idemitsu and directors are backing the raise.
Critical Minerals Group (ASX: CMG) has launched a $2.05 million capital raising to fund definitive feasibility study workstreams for its flagship Lindfield vanadium project in northwest Queensland.
The company will raise $1.25m through the issue of 20.83 million new shares priced at $0.06 each to sophisticated, professional, and other exempt investors under a share placement.
Additionally, eligible shareholders in Australia and New Zealand will each be able to apply for up to $30,000 of shares at the same price under a share purchase plan to raise an additional $800,000.
The issue price represents a 13% discount to the last traded price of $0.069 and a 7.8% discount to the five-day volume weighted average price of $0.065.
Critical Minerals majority shareholder Idemitsu Lindfield (33.86% equity) has committed to subscribing for up to 11.56 million placement shares (or approximately $694,059), the maximum allowed to retain its current equity interest after the raisings.
Strong Director Support
Substantial Critical Minerals shareholder Gerhard Redelinghuys and Stanmore Resources (ASX: SMR) non-executive director Matt Latimore are also electing to increase their shareholding.
Mr Redelinghuys—a resources executive and business builder with more than 30 years’ experience across finance, mining operations, project development, corporate strategy, and capital markets—was this week appointed a non-executive director to the CMG board.
He founded Bowen Coking Coal (ASX: BCB) in 2016 and, as chief executive officer, led its growth into an ASX Top 300 company and oversaw the start of production at three mines before stepping down from the job in 2023.
Previously managing director of Exxaro Australia and having held senior roles with Exxaro Resources and its predecessor organisations, Mr Redelinghuys is currently co-founder and managing director of M Critical Minerals and M Battery Materials.
Critical Minerals chairman Alan Broome said Mr Redelinghuys’ perspective would be valuable to the company as it evaluates opportunities to advance its strategy and pursue disciplined growth.
Lindfield DFS Workstreams
Net proceeds of the capital raising will be applied towards the commencement of DFS workstreams for the Lindfield project including a pre-wet season drilling program for geological, geotechnical, water monitoring, and mine planning purposes, as well as bench-scale metallurgical testing.
Funds will also be used to advance an environmental impact statement and mining lease application, including state and federal environmental approval prerequisites and the start of stakeholder liaison, and negotiations for a mining lease application.
Critical Minerals raised $1.5 million in June to progress offtake arrangements for vanadium electrolyte supply from Lindfield with vanadium flow battery manufacturers and data centres and to advance front-end engineering and design and site selection for a proposed Phase 1 vanadium electrolyte processing facility with annual capacity of 24 megalitres.
Those funds additionally helped defray the costs of progressing a tenure application and resource definition activities at Lindfield West to expand the company’s footprint in the proven Julia Creek vanadium province.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.