Critical Mineral Resources plc (LON: CMRS) shares rose 15% after the company secured a US$2 million, approximately £1.51 million, strategic equity investment from Nebari Natural Resources AIV II.
Nebari, a fund managed by natural-resources finance specialist Nebari Partners, will subscribe at 2.0p per share, equal to CMR’s 10-day average closing share price when terms were agreed.
Following completion, Nebari is expected to own approximately 15.2% of CMR’s enlarged issued share capital, becoming its second-largest shareholder alongside Gilini Holdings.
The proceeds will support resource definition, acquisitions, technical and development work at the Agadir Melloul copper-silver project in Morocco, and general working capital.
Nebari will also receive one warrant for every subscription share, with half exercisable at 3.0p and half at 4.5p for four years. Those prices represent premiums of 50% and 125% respectively to the subscription price.
If all warrants are exercised, they could provide CMR with a further approximately £2.8 million of funding.
Strategically, Nebari has also secured a right of first refusal over construction financing for Agadir Melloul and CMR’s future mine developments.
That gives CMR access to a specialist mining financier as the project advances, but the arrangement does not represent committed construction funding. Any future financing would still need to be agreed on market terms.
Nebari will also receive anti-dilution rights, a Board observer position and the right to nominate a member of CMR’s technical committee.
Chief executive Charles Long said the investment strengthens the company ahead of its planned maiden Mineral Resource Estimate and provides an early potential route towards development financing.
CMR said the upcoming resource estimate will reflect drilling across only 5% to 6% of the current Agadir Melloul project area, with drilling continuing.
For investors, the immediate benefit is a material injection of capital without a discount to the recent average share price, alongside the involvement of a specialist mine-development financier. The next major catalysts are the maiden Mineral Resource Estimate, continued drilling results and evidence that Agadir Melloul can progress towards an economically viable development plan capable of securing construction finance.
