CMG finds backing for Lindfield's next feasibility phase

$2.05 Million Raise Targets Lindfield Study

Critical Minerals Group (ASX:CMG) is asking shareholders to help fund the next technical stage of its Lindfield Vanadium Project, launching a capital raising of up to $2.05 million at 6 cents a share. The package combines a $1.25 million placement with an $800,000 share purchase plan, with most of the proceeds directed towards commencing the project's Definitive Feasibility Study.

The proposed work includes a pre-wet season drilling program covering geological, geotechnical, water monitoring and mine-planning requirements, alongside bench-scale metallurgical testing. CMG also plans to advance its Environmental Impact Statement and mining lease application, while reserving part of the funds for working capital and offer costs.

The raise gives the company a funded path into the next phase of a project that was recently assigned an $821 million pre-tax NPV and a 26.6% IRR in its prefeasibility study, although those figures remain project-level estimates rather than an operating outcome. The earlier Lindfield PFS economic case set the stage for the definitive study, while CMG's FY26 accounts had flagged funding as a material uncertainty.

Existing Shareholders Anchor the Placement

Idemitsu Lindfield, CMG's largest shareholder with a relevant interest of approximately 33.86%, has committed up to 11,567,657 shares worth about $694,059. That is the maximum subscription intended to preserve its current percentage holding if the offer is fully issued; the subscription will be reduced if other investors and the SPP provide enough demand.

Existing shareholder support also includes substantial shareholder Gerhard Redelinghuys, who has committed approximately $266,320 for 4,438,667 shares. Matt Latimore will increase his holding through the placement and become a substantial shareholder. The unconditional portion comprises 9,341,214 shares, while the Idemitsu and Redelinghuys commitments require shareholder approval.

At the 6-cent issue price, the placement is priced 13% below CMG's last traded price of 6.9 cents before the trading halt and between 7.3% and 8% below the cited longer-period VWAP measures. If the SPP reaches its $800,000 cap and both conditional subscriptions are approved, shares on issue would rise from 126.1 million to as many as 160.3 million.

Board Adds Project Experience as Costs Are Cut

Redelinghuys has joined the board as a non-independent non-executive director, effective 19 October, and will stand for election at the annual meeting on 30 November. CMG said his background spans mining operations, project development, corporate strategy and capital markets, including founding Bowen Coking Coal and serving as its managing director and chief executive until 2023.

The capital raising arrives alongside a leaner corporate structure. CMG has made its full-time chief financial officer role redundant following a cost review. Trudy Walsh will remain through her notice period until mid-January 2027 to support the transition, but has resigned as joint company secretary; Adam Gallagher will continue as company secretary and the ASX communications contact.

Approvals Stand Between Commitments and Cash

The unconditional placement shares are expected to be issued using CMG's existing placement capacity, but the Idemitsu and Redelinghuys subscriptions cannot proceed without shareholder approval under the relevant listing rules and corporations legislation. The resolutions are expected to be put to shareholders at the 30 November AGM, alongside Redelinghuys' election to the board.

That makes the SPP response and the AGM two immediate tests for the financing plan. The study work itself also remains dependent on execution of drilling and metallurgical programs, as well as progress through environmental and mining approvals. The funding may move Lindfield into its next formal development stage, but it does not yet resolve the much larger capital requirement implied by the project's prefeasibility economics.