Critical Mineral Resources plc has secured a strategic equity investment of US$2 million (£1.51m) to progress the Agadir Melloul silver-copper project in central Morocco.
The funds from Nebari Natural Resources AIV II LP will go towards resource definition, acquisitions, technical and development work at Agadir Melloul and working capital.
On 1 October, Nebari subscribed for 75,466,002 new ordinary Critical shares at two pence each, resulting in ownership of 15.2% of the enlarged issued share capital.
Nebari will also become Critical’s second-largest shareholder along with Gilini Holdings Ltd.
The investor also receives one warrant per subscription share, exercisable at 3 and 4.5 pence over four years, offering a potential additional £2.8m for Critical.
Nebari also has right of first refusal over construction finance, the right to appoint an observer to Critical’s board and nominate a member of its technical team.
The fund is managed by specialist natural resources investment and finance group Nebari Partners, LLC., which focuses on mining companies progressing from development to production.
Critical chief executive officer Charlie Long described the investment as an “important independent endorsement of Agadir Melloul” and the company’s strategy in Morocco.
“A major challenge for exploration companies is financing their flagship projects into production, particularly companies whose shareholders aren’t familiar with that process.
“We are determined to build Agadir Melloul and have a strategy which is designed to minimize both dilution and execution risk.
“The investment also strengthens our balance sheet as we approach our maiden mineral resource estimate, an estimate that will reflect drilling across only 5% to 6% of our current project area.”
Critical has also issued 43,872,531 new ordinary shares, representing the balance of the conversion shares to Gilini.
Following admission of the conversion shares, the company’s issued share capital will comprise 496,037,691 ordinary shares.
Critical said it would make a separate announcement on admission of the subscription shares and other ordinary shares already in issue but not yet admitted.