Critical Minerals Raises $1.5M for Vanadium Electrolyte Push

Critical Minerals Group (ASX: CMG) raised $1.5 million through a two-tranche placement to fund its vanadium electrolyte strategy at the Lindfield project in north-west Queensland. The company issued 20.68 million new shares at $0.0725 each, a 14.71% discount to the last closing price of $0.085 and a 32.68% discount to the 15-day volume-weighted average price.

Directors and executives agreed to receive 1.67 million shares worth $121,080 in lieu of cash remuneration. Investors also got free attaching options, one for every two shares held, exercisable at $0.12 and expiring in 30 months.

Proceeds will go toward offtake talks for vanadium electrolyte supply with vanadium flow battery manufacturers and data centers. Critical Minerals plans to start definitive feasibility study workstreams and advance front-end engineering and design (FEED) for a proposed 24-megalitre-per-year electrolyte facility. The company is evaluating sites in New South Wales' Parkes Special Activation Precinct, the UK and the US.

Managing director Scott Winter said the placement strengthened the balance sheet and provided flexibility to progress the integrated vanadium strategy. "In particular, these funds will support continued engagement with potential offtake partners, planning for the next phase of development at Lindfield, and workstreams associated with our proposed vanadium electrolyte facility," he said.

Harbour City Corporate acted as lead manager, receiving a 6% management fee and a 2% handling fee, plus broker options on the same terms as investor options.

Vanadium flow batteries use vanadium electrolyte as a liquid medium to store energy for long durations. Lindfield sits in the Julia Creek vanadium province, where Critical Minerals also holds the Lindfield West tenure. The company intends to use that resource to feed its own electrolyte production, a vertically integrated model that could reduce supply chain costs for battery manufacturers.

The placement came at an Alpha Score of 39 out of 100, a Mixed label from AlphaScala's proprietary framework. The score reflects the project's early stage and the dilution from the issue, weighed against the strategic value of a domestic vanadium electrolyte supply chain.

Next catalysts include signing offtake agreements, completion of FEED studies and site selection for the electrolyte facility. The company has not set a timeline for those milestones.