Exploration and development company Critical Mineral Resources (CMR), which is focused on critical metals and minerals, has signed an exclusive option to acquire the Igli project, a high-grade silver/copper project in the Anti-Atlas, in Morocco, which has returned grades of up to 912 g/t silver and 2.97% copper.

Concurrently, the company has also raised £750 000 through the issue of a convertible loan note (CLN) to fund the company's working capital and capital expenditure requirements, including for exploration programmes at Igli.

A significant proportion of this investment will come from Swiss and United Arab Emirates-based private investment office Prism Group, which has a long-term investment approach.

CMR has also announced the move of current nonexecutive chairperson Dominic Traynor to executive chairperson.

The Igli project is strategically located on the same structural corridor as the Tiouit and Imiter mines. Imiter is one of the highest-grade and largest silver mines globally. CMR has secured a 16-month exclusive option to carry out geochemical, geophysical and drilling activities before making the main acquisition payment.

The company stated that encouraging initial sampling has been carried out at Igli so far. Grades acquired by CMR channel sampling and sampling of stockpiles include 912 g/t silver and 2.97% copper, 496 g/t silver and 3.34% copper, and 741 g/t silver and 3.21% copper.

Regional geology suggests three potential targets at Igli. The first involves higher-grade subvertical shear zones, the second a lower-grade basalt formation and the third deeper basement-hosted shear zones.

The company believes Igli's combination of high-grade mineralisation within the shear zones and lower-grade mineralisation in the basalt formation are indicative of a successful exploration project.

The Igli project consists of a 10.04 km² mining licence and an adjacent 5.96 km² exploration permit, for a total of 16 km².

"We are very pleased to have secured exclusivity and an option over the Igli project, one of the highest-grade prospects we have seen over the last 12 months. Its location, directly along strike from Tiouit and Imiter, adds to its prospectivity, as does the fact that this part of the Saghro Massif has seen relatively limited exploration and even less drilling or geophysics work over the years.

“We are also encouraged by the multiple targets at Igli, namely the vertical shear zones, which should have depth extension, and the mineralised basalt formation, which has the potential to be widespread," CMR CEO Charlie Long said on July 17.

"CMR has a fantastic opportunity in Morocco, and potentially further afield, thanks to management's blend of skills, sector experience and deal flow. Although Prism's largest investment is in the financial sector, our shareholders have extensive mining experience, and we also have a strong mining network, including potential co-investors across the Gulf Cooperation Council and North Africa," Prism Group COO Guy Rothschild added.

CMR expects to acquire 90% of the Igli project based on several terms. The first of these is a $12 000 exclusivity payment in cash, granting CMR about two months of exclusivity until September 13 to undertake legal due diligence of the property.

The second term is an $80 000 exclusive option payment, granting CMR 14 months from September 13 to acquire a 90% interest in the property in return for a cash payment of $560 000.

Seven months following September 13, if the exclusive option has not yet been exercised and therefore the $560 000 not been paid, a $60 000 option maintenance fee is payable to maintain the exclusive option for a further seven months. This $60 000 is deductible from the $560 000 cash payment.

A final payment of $150 000 is due six months following the cash payment for a 90% stake, in either cash or equity at the vendor's discretion. CMR also has the right to acquire the final 10% of the Igli project for $500 000 in cash.

Not including the initial $12 000 exclusivity payment, the total acquisition cost is $790 000 for 90% of the property and $1.29-million for 100% of the property.

In addition to the Igli acquisition, CMR has raised £750 000 through the issue of CLNs, the proceeds of which will be used to fund the company's working capital and capital expenditure requirements, including exploration programmes at Igli.

The CLNs were issued on July 16 with a drawdown period until August 16. The maturity date is 12 months after the issue date, and conversion can happen any time after the issue date but prior to the maturity date.

The conversion price is £0.11 a share, and the interest rate is 5% coupon. Stock warrants are attached to the CLNs and issued on the issue date, with a ratio of one warrant for every two shares representing the principal amount of the CLNs. The warrant exercise price is £0.13.