Green Critical Minerals Unlocks Trading with 10,000 Free Listed Options Offer

Background and Offer Details

Green Critical Minerals Limited (ASX: GCM), a player in the graphite mining sector, has issued a prospectus dated 4 February 2025 offering up to 10,000 Listed Options at a nil issue price. This strategic move is designed to remove trading restrictions on a large tranche of unlisted options previously issued by the company, thereby enabling secondary trading and potentially increasing liquidity for investors.

The options in question were originally issued on an unlisted basis in late 2022 and are exercisable at $0.022 with an expiry date of 12 October 2025. The company is now seeking official quotation of these options on the ASX, a process that requires the issuance of this transaction-specific prospectus under section 713 of the Corporations Act.

Strategic and Financial Implications

The offer is not underwritten and is only available to select investors personally invited by the company. Importantly, no funds will be raised from this offer, and the company expects a net cash outflow of approximately $31,581 to cover associated expenses. The issuance of these Listed Options will not affect the current shareholding structure or control of the company, with no shareholder expected to exceed 20% voting power as a result.

Green Critical Minerals currently has over 470 million options and nearly 2 billion shares on issue, alongside almost 194 million performance rights. The offer of 10,000 Listed Options is a small but significant step towards improving marketability of these securities.

Operational Risks and Legal Challenges

The company’s operations are not without risk. Green Critical Minerals is engaged in litigation with Hexagon Energy Minerals Limited concerning alleged breaches of warranties related to the McIntosh Graphite Project. The dispute centers on discrepancies in metallurgical test results, with Green Critical Minerals seeking damages for wasted expenditure following exploration activities exceeding $4 million.

This legal battle adds a layer of uncertainty to the company’s prospects, alongside other risks typical of the mining sector such as exploration success, environmental approvals, market volatility, and the commercialisation of its VHD Technology, which remains at a pilot plant stage.

Market Context and Investor Considerations

The offer comes amid a period of active development for Green Critical Minerals, including recent announcements highlighting progress on their VHD Technology pilot plant and the McIntosh Graphite Project earn-in completion. However, the company cautions that the Listed Options are speculative investments, with a comprehensive risk section in the prospectus outlining company-specific, industry, and general market risks.

Investors are advised to consider these risks carefully and seek professional advice before participating. The company also emphasizes compliance with regulatory requirements and continuous disclosure obligations, providing transparency through regular ASX announcements and updates.