Critical Resources (ASX:CRR) strengthens balance sheet with $1.75m placement

Critical Resources has moved to reinforce its funding position with a $1.75m placement completed at $0.01 per share, matching the last traded price and carrying a 1-for-4 attaching option exercisable at $0.008 on or before 23 April 2028, a structure that underlines both investor support and board alignment at a time when the company is advancing programs across lithium, gold antimony and solid state battery technology.

Highlights

• $1.75m raised before costs through the issue of 175,000,000 shares at $0.01 with 1-for-4 attaching options at $0.008, expiring 23 April 2028.
• Placement completed at no discount to the last close and at a 5.3% premium to the 30-day VWAP of $0.0095.
• Board and management participation of $250,000, subject to shareholder approval, alongside new and existing sophisticated investors.
• Funds allocated to the 100% owned Mavis Lake Lithium Project in Canada, gold and antimony exploration in New Zealand and New South Wales, and a solid state lithium-ion battery evaluation program with the South Dakota School of Mines.

The placement comprised binding commitments from sophisticated and professional investors for 175,000,000 fully paid ordinary shares, all ranking equally with existing equity, with settlement scheduled for 11 February 2026.

Pricing at $0.01 represented no discount to the 23 January 2026 close and a premium to the 30-day VWAP, a result that suggests demand sufficient to clear the book without pricing concessions, while also providing an options component that extends potential capital optionality to 23 April 2028.

Chairman Bilal Ahmad and Managing Director Tim Wither committed $200,000 and $50,000 respectively, with the director participation subject to shareholder approval under ASX Listing Rule 10.11, reinforcing alignment between management and incoming investors at the register level.

The placement was led by 62 Capital Pty Ltd, which will receive a fee of 6% of the gross amount raised and 17,500,000 unlisted options on the same terms as the attaching options, with securities issued under the company’s existing placement capacities pursuant to Listing Rules 7.1 and 7.1A.

From a strategic perspective, the deployment of proceeds is directed across a portfolio that spans hard rock lithium in Ontario through the 100% owned Mavis Lake Lithium Project, gold and antimony programs in New Zealand and New South Wales, and an evaluation program in solid state lithium-ion battery technology in collaboration with the South Dakota School of Mines.

The breadth of allocation reflects the company’s stated focus on metals and next generation battery technologies, while the sequencing of work programs is framed around advancing existing assets and initiating technical evaluation in parallel.

Managing Director Tim Wither characterised the outcome as a validation of market support and a platform for execution, stating

“This capital raising places Critical Resources in a strong position to advance our key projects. We were pleased to complete the Placement at no discount to the last traded price, reflecting solid investor support and confidence in the Company’s direction. The funds enable us to accelerate work at the Mavis Lake Lithium Project, progress our gold and antimony exploration programs in New Zealand and New South Wales, and commence the solid state battery evaluation program with the South Dakota School of Mines. Importantly, the Board and management have continued to invest alongside shareholders, underscoring our confidence in the Company’s assets and growth trajectory. Our focus now is on execution and delivering tangible progress in the months ahead.”

The placement also provides working capital and corporate flexibility, with an indicative timetable that includes shareholder approval for director participation in mid March 2026 and the issue of director securities later that month.

In the context of a market that has increasingly differentiated between well funded explorers and those constrained by balance sheet capacity, the ability to complete a $1.75m raise at prevailing market price, with a premium to recent volume weighted averages, places Critical Resources in a position to progress its stated programs with a fully funded near term work plan and a strengthened financial platform.

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