The share price of Stillwater Critical Minerals surged by one-third on Friday, after the Montana-focused company announced a 9.99% strategic investment by commodities major Glencore.

Glencore has agreed to purchase 19 758 861 units of Stillwater at C$0.25 each for gross proceeds of C$4.94-million. Each warrant entitles the major to purchase one common share at C$0.375, providing up to C$5.2-million additional funding, if exercised in full.

Stillwater Critical Minerals president and CEO Michael Rowley said that the Glencore investment was a major step forward for the company, as it advanced its flagship Stillwater West project to become a source of battery and precious minerals.

“There are very few projects globally, and especially located within the United States, that offer the combination of grade and scale in a producing district that we see at Stillwater West,” he said.

An expanded National Instrument 43-101 mineral resource estimate, released in January, delineates a compelling suite of critical minerals contained within five Platreef-style nickel and copper sulphide deposits at Stillwater West, which hosts a total of 1.6-billion pounds of nickel, copper and cobalt, and 3.8-million ounces of palladium, platinum, rhodium and gold, and remains open for expansion along trend and at depth.

Rowley said that Stillwater Critical Minerals is busy booking drills and crews for its 2023 drill campaign with a focus on expansion of the high-grade nickel/copper sulphides identified in past campaigns.

We look forward to announcing further details in the coming weeks, along with the start of drilling.” 

With two renowned Bushveld and Platreef geologists on its team, the company believes it is well positioned to advance the next phase of large-scale critical mineral supply from the iconic and famously productive Sillwater mining district.

The junior’s project is located adjacent to Sibanye-Stillwater.

The company’s share price rose 33.33% to C$0.22 a share on Friday.