$1.5 Million Placement to Drive Vanadium Electrolyte Expansion at Critical Minerals Group

Capital Injection Targets Vanadium Electrolyte Growth

Critical Minerals Group (ASX:CMG) has locked in $1.5 million before costs through a strongly supported two-tranche placement priced at 7.25 cents per share, representing a notable discount of nearly 15% to last close and over 30% to the 15-day VWAP. The capital raise aims to underpin the company’s integrated vanadium strategy, particularly advancing its vanadium electrolyte facility and the Lindfield Vanadium Project in Queensland.

The placement will issue 20.7 million new shares, with tranche one raising approximately $1.13 million from existing placement capacity, and tranche two set to raise the remaining $369,000 subject to shareholder approval. Alongside the shares, investors will receive free attaching options exercisable at 12 cents within 30 months, also contingent on approval.

Funds to Accelerate Development and Offtake Talks

Proceeds from the placement will fuel several critical workstreams: progressing offtake negotiations with vanadium flow battery manufacturers and data centre partners, planning and initiation of Definitive Feasibility Studies (DFS) for the Lindfield Vanadium Project, and advancing front-end engineering design (FEED) and site selection for the proposed 24 ML per annum vanadium electrolyte facility. Potential sites under consideration include Parkes SAP in New South Wales, as well as locations in the USA and UK.

Additionally, the company will push forward tenure applications and resource definition for Lindfield West, while maintaining general working capital. This capital injection follows a pattern of steady funding rounds supporting the company’s upstream and downstream vanadium ambitions, building on earlier feasibility and development milestones.

Management Aligns Interests with Equity Participation

In a move signalling confidence, CMG’s directors and executives have agreed to accept up to 1.67 million new shares worth approximately $121,000 in lieu of cash fees, pending shareholder approval. This aligns management’s interests with shareholder outcomes as the company navigates its next development phases.

The placement is led by Harbour City Corporate Pty Ltd, which will earn a 6% fee plus GST on the gross proceeds, alongside broker options on a one-for-one basis mirroring the investor options. This incentivises the lead manager to support the company’s capital raising efforts and ongoing market engagement.

Timetable Hinges on Shareholder Approvals

Tranche one settlement and share issuance are scheduled for late June, with shareholder meetings planned for early August to approve tranche two shares, options, and director remuneration shares. The final tranche settlement and option issuance are expected shortly thereafter, though these dates remain indicative and contingent on approvals and ASX requirements.

CMG’s Managing Director Scott Winter emphasised the strategic importance of the placement, highlighting that the funds will provide the flexibility to advance commercial, technical, and development activities across the vanadium supply chain. The company is positioning itself to meet growing demand for secure, Western-sourced vanadium products critical for long-duration energy storage solutions.