Critical Metals PLC Enters into Offtake Agreement (0478P)
October 09 2023 - 1:00AM
UK Regulatory
TIDMCRTM
RNS Number : 0478P
Critical Metals PLC
09 October 2023
Critical Metals plc / EPIC: CRTM / Market: Main Market
9 October 2023
Critical Metals plc
("Critical Metals" or the "Company")
Enters into Offtake Agreement with OM Metal & Resources
S.A.R.L.
Critical Metals plc ( or the "Seller"), a mining investment
company established to acquire mining opportunities in the critical
and strategic metals sector, is pleased to announce that it has
entered into an offtake agreement (the "Agreement") with OM Metal
& Resources S.A.R.L ("OM Metal" or the "Buyer") for the sale of
a minimum of 20,000 tonnes of copper oxide ore from the Company's
flagship Project - the Molulu copper/cobalt project ("Molulu") in
the Democratic Republic of Congo ("DRC").
The Agreement is valid from 4 October 2023 to 31 December 2023
and can be renewed on mutual agreement from both parties. During
the contract, and where possible, Critical Metals will provide the
Buyer with copper ore with an average minimum acid soluble copper
grade of 1.5%.
As a general guidance for the ore sales price, using an LME
copper price of US$8000 and an acid soluble copper grade of 3%, the
gross price received for the sale of copper ore would be US$91.20
per tonne.
The Buyer has already taken delivery of the first load of copper
ore last week and has a fleet of ten trucks, each with the capacity
to transport 40 tonnes of ore.
Russell Fryer, CEO of Critical Metals commented:
"In the last few months, we have experienced significant
interest from seven different buyers of our product. We are
delighted to announce our offtake agreement with OM Metal &
Resources, making Critical Metals the first western and London
Stock Exchange listed company to produce and sell copper ore in the
DRC since Glencore and Ivanhoe. This momentous achievement will
provide us with short term cashflow and allows us to fast track our
progress at Molulu.
"We are sticking to our first phase production target of
producing 10,000 tonnes of oxide ore per month and this partnership
allows for the production at Molulu to be monetised quickly.
Furthermore, with the current diamond drilling programmes that are
underway at the Molulu oxide and sulphide zones, our confidence in
the large potential of Molulu continues to grow."
Analysis, pricing, and payment of copper oxide ore
Weighing, moisture determination, sampling, and analysis shall
be carried out after the delivery of five trucks of ore to OM
Metal's factory. Critical Metals will send a designated
representative to supervise this process to ensure accuracy.
The sales price used will be based on the closing daily LME
copper price on the delivery date of the 5(th) truck. Once the
invoice is sent to the Buyer, the Buyer will make the payment of
all the invoices received for current week, in the following week,
minus a transportation cost.
**ENDS**
For further information on the Company please visit
www.criticalmetals.co.uk or contact:
Critical Metals plc
Russell Fryer, CEO Tel: +44 (0)20 7236 1177
Peterhouse Capital Limited
Corporate Broker
Lucy William / Charles Goodfellow Tel: +44 (0)20 7469 0936 / +44
(0)20 7220 9797
St Brides Partners Ltd
Financial PR
Catherine Leftley /Ana Ribeiro/Isabelle Tel: +44 (0)20 7236 1177
Morris
About Critical Metals
Critical Metals PLC has acquired a controlling 100% stake in
Madini Occidental Limited, which holds an indirect 70% interest in
the Molulu copper/cobalt project, a producing asset in the Katangan
Copperbelt in the Democratic Republic of Congo.
The Company will continue to identify future assets that are in
line with its stated acquisition objective of low CAPEX and OPEX
brown-field projects with near-term production and cash-flow,
whilst concentrating on minerals that have strategic importance to
future economic growth thereby generating significant value for
shareholders.
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END
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