CMG Advances Lindfield Vanadium Project with $821M NPV and $1.5M Placement

Robust Pre-Feasibility Study Validates Lindfield Project

Critical Minerals Group (ASX:CMG) has cleared a major milestone with the completion of a Pre-Feasibility Study (PFS) for its Lindfield Vanadium Project, delivering a pre-tax net present value (NPV) of A$821 million and an internal rate of return (IRR) of 26.6%. The study underpins a 31-year mine life producing an average of over 10,500 tonnes of vanadium pentoxide (V₂O₅) annually during the first 16 years, with a total capital cost approaching A$1 billion.

The project integrates an open-cut vanadium mine near Julia Creek in northwest Queensland with a Vanadium Electrolyte (VE) manufacturing facility planned for the Parkes Special Activation Precinct in New South Wales. This dual approach aims to tap into growing demand for vanadium flow batteries, particularly targeting data centre and grid firming applications.

Strategic Transition to Definitive Feasibility Study

With the PFS confirming technical and financial viability at ±25% accuracy, CMG is now progressing towards a Definitive Feasibility Study (DFS), targeting a Final Investment Decision (FID) in 2027. The company has outlined three board-endorsed priority workstreams to support this transition: upgrading the mineral resource estimate and completing metallurgical pilot plant testing to optimise vanadium recovery; securing long-term, competitively priced supply agreements for key reagents like sulphuric acid and sodium hydroxide, which are major cost drivers; and advancing government concessional finance applications alongside binding offtake negotiations to lock in pricing and support project financing.

Importantly, the company plans a staged development where the VE facility is commissioned ahead of the Lindfield mine, utilising third-party V₂O₅ feedstock to bring forward revenue streams as early as 2028 while reducing peak funding requirements.

Capital Raising and Funding Risks

To support these next steps, CMG successfully completed a two-tranche placement raising $1.5 million before costs, with $1.13 million settled and the remaining $369,000 subject to shareholder approval at an upcoming general meeting. This injection will fuel feasibility activities, pilot plant programs, and offtake negotiations.

Despite this progress, funding remains a critical risk. The company is actively pursuing a mix of equity, debt, and concessional government funding facilities, including NAIF, NRF, and the Critical Minerals Facility. CEO Scott Winter’s recent engagements at the EXIM and Select USA conferences highlight ongoing efforts to secure government support and international partnerships.

Exploration and Environmental Progress

CMG holds a substantial mineral resource at Lindfield, with 713 million tonnes at 0.32% V₂O₅ (491 Mt Indicated, 222 Mt Inferred), though no Ore Reserve has yet been declared pending further drilling under the DFS. The company is consolidating its tenements into a single Lindfield Project and has submitted tenders for adjacent ground to expand its footprint.

Environmental studies have been incorporated into the PFS, and planning for the Environmental Impact Statement (EIS) is underway, with early engagement continuing with regulators and local stakeholders including the McKinlay Shire Council.

Vanadium Electrolyte Offtake and Market Opportunities

CMG is actively negotiating offtake agreements for vanadium electrolyte to support emerging vanadium flow battery installations, particularly for data centres. This aligns with the company’s strategic focus on the battery energy storage market, which is gaining traction as a critical component of renewable energy integration.

The company is also collaborating with James Cook University on advanced mineralogical characterisation to optimise vanadium extraction and processing from its Toolebuc Formation deposits, with early results expected later this quarter.

Financial Position and Outlook

The June quarter saw exploration expenditure of $522,000 and corporate costs of $543,000, including $410,000 in salaries and director fees. Cash reserves ended at $823,000, reflecting net cash outflows from operating and investing activities, partially offset by the placement proceeds.

With estimated funding available for less than one quarter at current burn rates, CMG acknowledges the need for ongoing capital raising to maintain momentum. The company expresses confidence in its ability to continue operations based on its track record of successful funding and shareholder support.