London-listed Critical Mineral Resources (CMR) has signed an investment agreement with Gilini Holdings for the provision of £2.5-million in funding to be used for project acquisitions, expanding CMR’s commodities trading venture, working on the existing portfolio and general working capital.

Meanwhile, the company will continue to focus its efforts on its work in Morocco.

"The main challenge for junior mining companies is securing sufficient finance to fund exploration and development work, whether on their own assets or as part of an earn-in. CMR is now in the excellent position of being well-financed, enabling it to focus on creating value in Morocco and executing on some extremely exciting opportunities,” CMR CEO Charlie Long said on March 10.

The first £425 000, which has been received by CMR, has been provided through the issue of loan notes (CLNs), convertible into ordinary CMR shares at £0.011 a share, maturing on December 31, 2028.  

The CLNs attract interest of 15% a year (which accrues) and have one warrant for every two ordinary shares represented by the principal amount of CLNs. Each of the warrants will be exercisable at a price of £0.013 until December 31, 2028.

A second tranche of £1.325-million, expected in the second quarter of 2025, will comprise an £825 000 subscription for new ordinary shares at a price of £0.0145, and £500 000 to be provided through a second loan instrument, convertible at £0.0145 and with 5% accruing interest.

The third tranche of £750 000 will be invested in the first quarter of 2026 through a subscription for new ordinary shares at a price of £0.0153.

The subsequent finance is contingent on the company entering into a formal agreement on one or more development projects in Morocco, most likely to be copper or manganese.

"We . . . see immense untapped potential in Morocco, particularly for copper. Following thorough due diligence, we have full confidence in CMR's leadership to unlock this opportunity. We look forward to applying our expertise in close collaboration with CMR's executive team to maximise success,” Gilini advisory board member Russell Tucker said.