Investment company Critical Metals has said its immediate priority is to secure the necessary funding to restart diamond drilling and exploration activities at its 70%-owned Molulu copper project, in the Democratic Republic of Congo (DRC).

The company said on March 31 in its results for the six-month period ended December 2024 that it was actively engaging with investors, creditors and strategic partners to support this objective.

Key upcoming initiatives include finalising the recapitalisation of Critical Metals to ensure financial stability for the next phase of growth. Once funds are received, the company plans to purchase a diamond drill rig to drill the most prospective areas at Molulu.

Critical Metals is in exclusive discussions with NIU Invest, with a view to NIU providing capital for restructuring and to fund further exploration at Molulu.

The company aims to continue identifying promising development opportunities at Molulu, with the potential to expand mineralised copper zones.

"We are firmly focused on unlocking the inherent value potential of Molulu. Whilst financial constraints during the period under review have limited our operational activity, we remain confident in Molulu's value proposition as an exciting copper asset in a sector experiencing renewed Western interest and solid copper prices," Critical Metals CEO and chairperson Russell Fryer said.

According to him, the six-month period under review has focused on stabilising the company and positioning it for future growth. This has involved a financial and corporate restructuring, which has been supported by NIU Invest.

NIU had provided financial support to the company, and exclusive discussions with NIU were ongoing regarding capital for future exploration and development at Molulu. A resolution was expected soon, Fryer said.

"Molulu is an exciting asset and we have identified clear routes for exploration progress. Exploration work in the second half of 2024 identified the presence of three distinct zones of copper, which give an initial indication of the untapped and extensive potential at Molulu.

“OM Metals also renewed the offtake agreement in August 2024 following favourable copper grades from ore testing, and in November, OM Metals purchased some stockpiled ore, which has been achievable thanks to the rehabilitation of the 28-km public road leading to Molulu," Fryer said.

While operational progress during the period had been slower than anticipated, the company said it had taken decisive steps to manage costs effectively and ensure preparedness for future activity.

In October last year, operations at Molulu were streamlined by reducing the workforce and eliminating non-essential expenditures. The current team continued to maintain site operations efficiently and was working towards restarting drilling once capital was secured, Fryer explained.

At the board level, the company implemented further cost-saving measures, including voluntary salary reductions of 25% at the executive and subsidiary levels.

In December, the company strategically expanded board experience with the appointments of Jean Pierre Tshienda as executive director and Kelvin Williams as nonexecutive director.

Tshienda, who previously served as a consultant to the DRC mining cadastre, provided strategic advice on mining governance and policy formulation.

Williams had a record in strategic restructuring, project financing, and corporate transformations. Their skill sets were contributing to repositioning the company for growth, Fryer said.

Simultaneously, Marcus Edwards-Jones stepped down from his role as a nonexecutive director.

"As we look to the future ahead, I am optimistic. We have a strategic asset with good copper grades, and with the necessary financing, we have a clear development plan. Alongside this, we have a supportive market backdrop as the global copper market remains strong, driven by increasing demand for electrification and renewable-energy initiatives," Fryer said.

He added that the company also aimed to appoint a director-general in the DRC with strong regulatory expertise, local experience and fluency in French to enhance engagement with local authorities.

"We also remain committed to corporate governance, risk mitigation, and regulatory compliance in the DRC. Recent challenges, including creditor pressures and operational disruptions, underscore the importance of a robust governance framework and proactive risk management," Fryer said.