Shares of Critical Mineral Resources PLC soared by 84% to 5.3p after announcing the successful closure of its asset sale in Cyprus and the subsequent increase in stake by prominent shareholder, Jason Cropper.
In alignment with its strategic pivot to concentrate on accumulating a collection of critical metal projects in Morocco, an agreement was struck in January with PM Ploutonic Metals and Indo-European Mining for a sale worth US$528,001, to be paid in stages.
The initial instalment of US$100,000 was settled in February. However, market conditions led to a rescheduled arrangement for the concluding payment, dividing it into two separate sums.
The firm has confirmed the receipt of a second payment amounting to £169,639 (equivalent to US$213,750). This signifies the transaction was concluded on 13 September, with a final sum of US$214,250, alongside interest, set for 22 December.
Executive Chairman Chris Lambert commented, “Today’s revelation symbolizes a pivotal shift in CMR’s journey. Finalizing the Cyprus asset sale allows us to channel our undivided attention on capitalizing on the promising ventures we’re cultivating in Morocco.”
Simultaneously, Cropper has committed to acquiring 4,240,987 shares from Cyprus buyer, Indo-European Mining.
This purchase has elevated his total holdings to slightly above 12 million shares, equating to 19.7% of all shares and 23.8% in voting rights, a surge from his previous 15.45%.
The company’s recent briefing highlighted discernible advancements in Morocco, especially post the procurement of Atlantic Research Minerals in June. They’ve pinpointed several zones with potential reserves of copper, silver, manganese, and barite.
Background
Critical Mineral Resources plc signed the original share purchase agreement (the ‘Original SPA’) with Ploutonic and Indo (the ‘Purchasers’) on 25 January 2023. The Purchasers agreed to pay the Company US$528,001 (‘Purchase Price’) in cash, as staged payments over the course of H1 2023.
The Purchasers paid the First Purchase Payment of US$100,000 on 17 February 2023, which triggered the transaction Closing. However, the Final Purchase Payment of US$428,000 and, therefore, Completion was delayed due to market conditions.
Amended Share Purchase Agreement
CMR and the Purchasers signed an Amendment Agreement whereby the SPA was amended to allow the US$428,000 owed (not including interest) to be split into two payments, the Third Payment and the Final Payment, and for Completion to occur once the Third Payment had been received.
Completion
The Third Payment of £169,639 (US$213,750) has now been received and in accordance with the Amended SPA, Completion occurred on 13 September 2023. The shares in CMR’s Cyprus companies are now being transferred to the Purchasers.
Final Payment in December
The Final Payment of US$214,250 plus interest is due on 22 December 2023 (Final Payment Date). The interest is calculated at 8% on any outstanding amounts from 12 May to Completion (13 September) and from Completion to the Final Payment Date.
Chris Lambert, Executive Chairman of CMR PLC, commented:
“This announcement marks an important transition in CMR’s development. The Completion of the sale of Cyprus Assets enables the Company to ensure its focus is wholly centred on maximising value from the exciting opportunities it is generating in Morocco.”
