Critical Minerals Group Limited (ASX: CMG) has announced it secured binding subscriptions to raise $1.5 million before costs through a two-tranche placement. The Brisbane-based critical minerals company develops an integrated vanadium supply chain for vanadium flow batteries and long-duration energy storage, underpinned by its flagship Lindfield Vanadium Project. This capital raising is primarily earmarked to advance CMG’s vanadium electrolyte strategy, bolstering its position in the rapidly evolving energy storage market.
The placement involves issuing 20,689,655 new fully paid ordinary shares to sophisticated investors at $0.0725 per share, a 14.71% discount to the last closing price. Tranche 1 will raise $1,130,757 from 15,596,648 New Shares under Listing Rule 7.1 capacity. The remaining $369,243 from 5,093,006 New Shares forms Tranche 2, subject to shareholder approval. Directors and executives also committed to receive 1,670,068 New Shares, valued at $121,080, in lieu of cash fees, pending shareholder approval. Each two New Shares will further include one free attaching unlisted option, exercisable at $0.12 and expiring in 30 months, subject to approval.
Proceeds will advance CMG’s integrated vanadium strategy. Key initiatives include progressing offtake negotiations for vanadium electrolyte supply and planning for the Definitive Feasibility Study for the Lindfield Vanadium Project. Funds will also support advancing site selection and Front-End Engineering Design for a proposed 24 ML per annum Phase 1 vanadium electrolyte facility, with potential locations including Parkes SAP in NSW, USA or UK. Capital also covers Lindfield West tenure application, resource definition, and general working capital.
Critical Minerals Group Managing Director, Scott Winter, commented that the placement strengthens the company’s balance sheet and provides flexibility to progress its integrated vanadium strategy. He acknowledged strong investor support and the commitment from directors and executives to accept shares in lieu of cash. Mr Winter concluded that the funding better positions CMG to advance key commercial and development activities across its upstream and downstream vanadium strategy.
