• Critical Resources (CRR) is set to raise C$6 million (A$6.7 million) through a share placement to advance its Mavis Lake drilling program in Ontario, Canada
• The company will place new shares at 8 cents to raise the funds — a 45 per cent premium to its last closing price
• The funds will be used to accelerate 20,000 metres of drilling at Mavis Lake, with the introduction of additional drill rigs, plus a survey, fieldwork and follow-up drilling
• New shares will be issued on December 1
• Shares in Critical Resources are up 1.82 per cent and trading at 5.6 cents at 12:45 pm AEDT

Critical Resources (CRR) is set to raise C$6 million (A$6.7 million) through a share placement to fully fund its Canadian drilling plans in 2023.

The company conducted the raise using its ‘flow-through shares’ provision under Canadian tax law, under which CRR placed shares at 8 cents — a 45 per cent premium to Critical Resources’ last closing price.

“This capital raise fully funds Critical Resource’s Canadian drilling plans for 2023, where we intend to drill out approximately 20,000 metres at Mavis Lake,” Managing Director Alex Cheeseman said.

“We are focusing our efforts on advancing the Mavis Lake project, where we have seen exceptional results since the maiden drilling program began in April this year,” Mr Cheeseman said.

“With the maiden JORC 2012 compliant resource expected in Q1 2023, we can confidently accelerate our program through the introduction of additional drill rigs and continue to advance our studies in parallel.”

The company said it planned to apply the funds towards continued drilling at and around the main zone of the Mavis Lake project and towards survey, fieldwork and follow-up drilling of mapped spodumene-bearing pegmatites within the project area.

Settlement of the new shares is expected to occur on December 1, ranked equal with existing shares.

Shares in Critical Resources were up 1.82 per cent and trading at 5.6 cents at 12:45 pm AEDT.