Critical Minerals Group Raises $1.5m to Advance Lindfield Vanadium Electrolyte Strategy

Critical Minerals Group (ASX: CMG) has received binding commitments from sophisticated and professional investors for a $1.5 million capital raising to advance its vanadium electrolyte strategy at its flagship Lindfield project in north-west Queensland.

The two-tranche placement will start with the raising of $1.13m through the issue of 15.59 million new shares priced at $0.0725 each, with the balance of $369,243 raised through the issue of 5.09 million shares at the same price.

The issue price represents a discount of 14.71% to the last closing price of $0.085 and 32.68% to the 15-day volume weighted average price of $0.1077.

Critical Minerals directors and executives have agreed to receive an aggregate 1.67 million new shares to the value of $121,080 in lieu of cash remuneration.

A total of 11.17 million free attaching options will be issued to investors on the basis of one option for every two shares held, exercisable at $0.12 and expiring within 30 months.

Placement Proceeds Usage

Share placement proceeds will be used to progress offtake arrangements for vanadium electrolyte supply from Lindfield with vanadium flow battery manufacturers and data centres.

Critical Minerals is planning to engage partners for the start of definitive feasibility study workstreams for the project.

The company will also apply funds to advance front-end engineering and design (FEED) and site selection for a proposed Phase 1 24-megalitres per annum vanadium electrolyte facility to process ore from Lindfield.

The Parkes Special Activation Precinct (SAP) in New South Wales and various sites in the UK and the US are currently under assessment.

The raising will additionally help defray the costs of progressing a tenure application and resource definition activities at Lindfield West to expand Critical Minerals’ footprint in the region’s proven Julia Creek vanadium province.

Strengthened Balance Sheet

Managing director Scott Winter said the placement would strengthen the company’s balance sheet and provide additional flexibility to progress the integrated vanadium strategy.

“In particular, these funds will support continued engagement with potential offtake partners, planning for the next phase of development at Lindfield, and workstreams associated with our proposed vanadium electrolyte facility,” he said.

“Following completion of the placement, we expect Critical Minerals will be better positioned to advance key commercial, technical, and development activities across our upstream and downstream vanadium strategy.”

Harbour City Corporate was appointed lead manager to the placement and will receive a management fee equal to 6% of the gross proceeds plus a handling fee of 2% and broker options on a one-for-one basis for each new share issued, on the same terms as the investor options and subject to final terms and shareholder approval.