23rd May 2025 11:10
(Alliance News) - Critical Mineral Resources PLC on Friday said it signed a formal joint venture agreement to earn into a copper-silver project in Morocco, supported by a GBP1.33 million investment to fast-track development.
The London-listed exploration and development company focused on clean energy metals in Morocco said the deal, signed with an unnamed current owner of the project, gives it the right to earn a 60% interest in a shallow sedimentary-hosted copper deposit in central Morocco by achieving set milestones.
The board believes the deposit has potential to become a "significant new discovery".
As part of the transaction, CMR has received GBP1.33 million. Of this, GBP825,000 has been invested as equity through the issue of 56.9 million new shares at 1.45 pence each. The remaining GBP500,000 was provided as a convertible loan with 5% interest, also convertible at 1.45p.
The project has an initial exploration target of 150,000 to 200,000 tonnes of contained copper at 1.2% copper equivalent, CMR said.
Preparations for drilling are already underway, with a diamond drill rig acquired and scheduled for shipment from Canada next week. Drilling is expected to begin in the third quarter of 2025.
CMR said the project benefits from existing development work, including trenching, scout drilling, metallurgical test work, and a feasibility study. A 1,000-tonne-per-day copper flotation plant is planned as part of a fast-tracked 'initial mine' strategy. This will run in parallel with further resource delineation aimed at scaling the operation.
The company noted that the project's shallow depth, estimated at 50 metres, and proximity to infrastructure such as roads, grid power and water, should reduce development and operational costs.
CMR also appointed mining investment specialist Russell Tucker to its board as a non-executive director.
Tucker said: "The deposit's characteristics are consistent with other long-life, low-cost copper operations. There is excellent potential to power the mine with renewable energy, particularly solar. From a strategic standpoint, the asset aligns well with our investment thesis - anchoring value in stable jurisdictions with high-impact upside."
Chief Executive Officer Charlie Long added: "Whilst we have optioned, promoted, explored and been genuinely excited by two or three other copper-silver projects during this period, our key target has always been this. And by some margin. The investment, underpinned by the opinion of the anchor investor's independent mining expert, points to the quality of the project and its overall potential."
Shares in Critical Mineral Resources were up 13% at 1.30 pence in London on Friday morning.
By Eva Castanedo, Alliance News reporter
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