Critical Mineral Resources (CMR) has received an exclusive option to acquire the Igli project, a high-grade silver/copper venture in Morocco’s Anti-Atlas region.
The Igli project has reported impressive grades, including up to 912g/t of silver and 2.97% copper, positioning it as a significant asset for CMR’s portfolio.
In Morocco, the company positioned itself as a preferred development partner, amassing a diverse portfolio of critical commodities essential for Western economies and the energy transition.
To support its operational and capital expenditure needs, including exploration at Igli, CMR has raised £750,000 ($973,007) through a convertible loan note.
A notable portion of this funding is contributed by Prism Group, a Swiss and United Arab Emirate-based private investment firm known for its long-term investment strategy.
Situated along the same structural corridor as the Tiouit and Imiter mines, the latter being one of the world’s largest and highest-grade silver mines, the Igli project’s location is highly strategic.
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CMR has a 16-month window to conduct comprehensive geochemical, geophysical and drilling activities before finalising the main acquisition payment.
In a recent corporate reshuffle, CMR promoted Dominic Traynor from non-executive chairman to the role of executive chairman.
The company is optimistic about Igli’s prospects, citing the high-grade mineralisation within the shear zones and the lower-grade mineralisation in the basalt formation as indicators of a potentially successful exploration project.
The Igli project encompasses a 10.04km² mining licence and an adjacent 5.96km² exploration permit.
CMR intends to acquire a 90% stake in the Igli project, with the initial terms including a $12,000 exclusivity payment, allowing for two months of due diligence until 13 September.
Following this period, an $80,000 exclusive option payment will extend CMR’s interest acquisition window by 14 months from 13 September, with a subsequent cash payment of $560,000 required for the 90% stake.
Should the option not be exercised within seven months post-13 September, a $60,000 option maintenance fee is payable, which will be deductible from the $560,000 payment.
A final payment of $150,000 is due six months after the stake acquisition, payable in cash or equity at the vendor’s discretion. Additionally, CMR retains the right to purchase the remaining 10% of the Igli project for $500,000 in cash.
Excluding the initial exclusivity payment, the total cost for acquiring 90% of the Igli project is $790,000, and $1.29m for the entire 100% stake.
The recently issued CLNs, with a maturity date 12 months post-issue and a conversion price of £0.11 per share, will bolster CMR’s financial position.
The attached stock warrants, exercisable at £0.13, further enhance the funding structure, ensuring CMR is well-capitalised for its upcoming exploration programmes at Igli.
