Critical Minerals Group (ASX:CMG) is raising AU$7.4 million via a three-for-four pro-rata non-renounceable entitlement offer, according to a Wednesday filing with the Australian bourse.

The company will issue over 54 million new shares at AU$0.1375 each, representing around a 7% discount to the 10-day volume-weighted average price.

CMG's major shareholder, Idemitsu Lindfield, made a binding commitment to invest up to AU$2.5 million. The entitlement offer includes a shortfall facility.

Proceeds will support the company's Lindfield project in Queensland, as well as the vanadium electrolyte facility, per the filing.

Morgans Corporate acted as lead manager to the offer.