Critical Resources Raises $1.6 Million in Two-Tranche Placement

Placement Raises $1.6 Million to Accelerate Exploration and Technology

Critical Resources Limited (ASX:CRR) has secured $1.6 million through a placement of 320 million shares priced at $0.005 each, accompanied by 160 million attaching options exercisable at $0.008 through April 2028. The raise, structured in two tranches, aims to underpin the company’s exploration push across New Zealand, Canada, Oman, and New South Wales, alongside continued development of its battery materials and thermal management technology programs.

The first tranche, issuing 225 million shares, is underway using existing placement capacities, while the second tranche, comprising 95 million shares, includes $475,000 worth of director participation pending shareholder approval. Non-Executive Chairman Bilal Ahmad, Managing Director Tim Wither, and Non-Executive Director John Markovic collectively intend to subscribe for this amount under the same terms as other investors.

Exploration Focuses on New Zealand and Lithium Prospects

Exploration funding from the placement prioritises New Zealand projects, notably follow-up drilling at the Cap Burn Gold Project and advancing work on the Granite Creek tungsten target at Croesus, as well as gold, tungsten, and antimony prospects in the Lammerlaw, Tokomairiro, and Silver Peaks areas. In Canada, the Mavis Lake Lithium Project in Ontario will see continued advancement of the Northern Prospects, including the Gullwing–Tot corridor, with ongoing permitting and government engagement. Meanwhile, in New South Wales, Critical Resources plans a low-impact soil geochemistry program at the Mayview antimony prospect within the Halls Peak project.

These exploration efforts build on recent discoveries such as high-grade tungsten assays at Granite Creek and lithium pegmatite expansions at Mavis Lake, reinforcing the company’s multi-commodity strategy. The company’s approach reflects a balanced allocation of $650,000 (40.6% of the raise) to exploration activities across its jurisdictions.

Early-Stage Technology Programs Continue with CSIRO Collaboration

Critical Resources is also advancing its battery materials and thermal management technology programs through wholly owned subsidiaries CriticalX Energy and CriticalX Neo. The former focuses on solid-state battery materials and manufacturing IP, developed in collaboration with the South Dakota School of Mines & Technology and recently initiated research with CSIRO. The latter holds an exclusive worldwide licence for two-phase cooling technology from Nanyang Technological University, targeting data centre and high-density electronics cooling applications.

The company has earmarked $300,000 (18.8% of the raise) for these technology initiatives, including a co-funding contribution to the CSIRO Kick-Start project and ongoing patent and licensing obligations. Both programs remain at an early stage, with no current revenue and uncertain commercial outcomes.

Corporate Costs and Loan Dispute Add Complexity

Alongside exploration and technology funding, $650,000 (40.6%) will cover corporate administration and working capital. However, Critical Resources faces an unresolved dispute related to a $3.5 million loan agreement with Savannah Resources Plc tied to its mining interests in Oman, held via subsidiary Gentor Resources. Savannah issued a default notice in July 2024, which the company disputes, and discussions are ongoing without a clear resolution timeline or financial impact certainty. The board acknowledges this may require reallocation of funds from working capital if necessary.

62 Capital Pty Ltd acted as lead manager for the placement, receiving a 6% capital raising fee paid in shares and options, aligning incentives with the company’s funding success.