Hill Dickinson advises Critical Metals plc on IPO fundraise and admission to LSE Main Market

Hill Dickinson’s London Corporate team has advised Critical Metals plc (CRTM) on an IPO fundraise and the company’s admission to trading on the Standard Segment of the Main Market for the London Stock Exchange. Trading commenced on Tuesday 29 September 2020.

CRTM completed a successful IPO fundraise through institutional and high-net-worth investors raising gross proceeds of £800,000 at a placing price of five pence per share.

CRTM is an investment vehicle formed to identify and acquire brownfield mining opportunities in the strategic metals sector as defined by the United States and European Union. With strong demand fundamentals and pricing, the initial focus is on near-term production opportunities, prioritising cashflow generation over exploration upside and where the board believes opportunities have been overlooked and under-analysed. 

The company initially intends to undertake an acquisition or acquisitions of equity interests in target companies or businesses (which will trigger a reverse takeover within the natural resources development and production sector in the continent of Africa (the ‘Initial Acquisitions’). At least one of the Initial Acquisitions will be for a majority equity interest to establish control of an operating entity, but the Company may also acquire significant minority equity interests, in target entities which are operators of near production or in protection of natural resources in the continent of Africa.

The proceeds from the IPO fundraise will principally be used by CRTM to identify investment opportunities for the Initial Acquisitions, to cover costs associated with the RTO and to fund the working capital requirements of CRTM.

Hill Dickinson has advised on a number of listings on the Standard Segment and has been working on this IPO throughout the UK’s COVID-19 lockdown and restrictions, which commenced in March.

The Hill Dickinson team was led by corporate legal director Mark Wheeler and assisted by associates Natalia Fryda and Paul Jackson.  

Russell Fryer, CEO of CRTM, noted:
“The admission of CRTM to the Standard Segment of the Main Market marks a very exciting and significant milestone in the Critical Metals story. It will provide us with the capital required to advance our strategy to identify and acquire brownfield mining opportunities in the strategic metals sector and build value for shareholders, as well as the access to further capital when required. Myself and the CRTM board look forward to providing further updates as we develop. 

“We could not have done this without the Hill Dickinson team, who worked with us to deliver the admission of this investment vehicle during very challenging times on a global scale. Mark Wheeler was available throughout to provide exceptional insight and guidance, and his team were exemplary. Particular thanks from myself and the board to Natalia, who was working on this diligently and swiftly despite some occasional time zone challenges. We look forward to working with Hill Dickinson as Critical Metals continues its journey.”