Critical Metals plc has secured a non-dilutive debt facility of US$3 million with an international financial institution. The funds will be used to accelerate the company's mining operations and increase production volumes, while also continuing negotiations with potential buyers of copper ore. The debt term is for 9 months, with the first US$500,000 installment due upon execution of the agreement. The company has the option to request further funds up to the maximum utilization of US$3 million. Interest will be paid only on the borrowed funds. The facility is not convertible into ordinary shares in the company.

As surety on the facility, Critical Metals CEO Russell Fryer will provide a personal guarantee by pledging his current shareholding in the company, representing two times the value of the capital borrowed. Fryer will retain full voting rights and ownership of the shares. Additionally, the company will issue warrants for the financial institution to subscribe for up to 2,000,000 ordinary shares in the company at a price of 40p per share, with an expiry of 12 months.

The funds will be used to accelerate mining capacity, add an additional diamond drilling rig, complete due diligence on copper and cobalt processing plants, and expedite value accretive deals related to copper ore. Fryer stated that the loan provides the necessary funds to accelerate growth and that he is committed to minimizing dilution for shareholders.

Critical Metals plc is a mining company focused on acquiring mining opportunities in the critical and strategic metals sector. It currently holds a controlling stake in Madini Occidental Limited, which has a 70% interest in the Molulu copper/cobalt project in the Democratic Republic of Congo. The company aims to produce 120,000 tons per annum of Copper Oxide Ore and seeks to acquire assets with low capital and operating costs that have near-term production potential and strategic importance.