Critical’s $12.5m placement supercharges lithium, base metals exploration
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Critical Resources is now well funded to accelerate exploration at its lithium and base metals projects after raising $12.5m through a well-supported placement.
Funds from the placement of shares priced at 8.5c to sophisticated and institutional investors will fund drilling at its high-grade Mavis Lake lithium project in Ontario, Canada, that is scheduled to begin in April.
This will follow-up on historical drill intersections such as 55.25m grading 1.04% lithium oxide from 80.75m, and 26.3m at 1.7% Li2O from 111.9m.
Critical Resources (ASX:CRR) will also use the funds to expand drilling that has already delivered excellent results at its Halls Peak base metals project in New South Wales.
Notable results to date include 5.3m grading 26.29% zinc, 12.49% lead, 1.28% copper, 49.18 grams per tonne (g/t) silver and 0.15g/t gold from 7.7m and 12.45m at 10.91% zinc, 5.73% lead, 1.15% copper, 331.63g/t silver and 1.5g/t gold from 4.6m.
“This capital raise is a step change for the company in terms of future development opportunities,” managing director Alex Biggs said.
“Funds will allow the company to execute its strategy and continue its aggressive exploration activities already underway at Halls Peak in NSW, and furthermore across its newly-acquired Mavis Lake and Graphic Lake lithium projects in Canada.
“This level of funding really does allow us to fast-track and accelerate our exploration strategies across our projects, which is an exciting value proposition for our shareholders.”
The placement funds add to the $4.75m in cash that the company had as at 31 December 2021.
Mavis Lake is located 20km east of the town of Dryden in close proximity to the Trans-Canada highway and railway along with access to hydropower.
The region is a well-established lithium exploration and development province, with multiple projects located within the vicinity.
Permitting for an initial 5,000m drill program is underway as well as additional exploration activities.
Early-stage exploration including airborne surveys and field mapping will also be conducted at the recently acquired Graphic Lake lithium project, located approximately 180km from Mavis Lake.
Once complete this work will lead to the development of a maiden drill program at Graphic Lake.
Critical’s Halls Peak project is located about 45km southeast of Armidale within the New England Fold Belt, an area famed for its mineral endowment and production.
The massive sulphide deposits were first discovered in 1896 where near surface mining extracted high-grade zinc, lead, copper and silver.
A 4,200m drill program is currently underway with recent approvals for another 1,200m of drilling to further test extensional and at depth potential.
Halls Peak is considered to have potential to contain a world class base metal deposit.
This article was developed in collaboration with Critical Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.