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Critical mineral resources secures funding for copper project in Morocco
Critical Mineral Resources (CMR) has entered into a joint venture agreement to acquire a 60% interest in a promising copper-silver project located in central Morocco. This initiative is bolstered by a substantial investment of £1.33 million aimed at expediting the development of the site, which is poised to begin drilling operations in the third quarter of 2025.
The agreement provides CMR with rights to a sedimentary-hosted copper deposit situated merely 50 meters beneath the surface. The company’s board expresses optimism regarding this project, citing its potential to represent a significant new mineral discovery.
Initial exploration targets estimate the presence of between 150,000 and 200,000 tons of contained copper, with a copper equivalent grade of 1.2%. Preparations for drilling are already in progress, including the acquisition of a diamond drill rig scheduled for transport from Canada. This equipment is expected to facilitate the commencement of drilling shortly.
Of the total investment, £825,000 has been allocated as equity through the issuance of 56.9 million new shares priced at 1.45 pence each. The remaining £500,000 has been provided as a convertible loan, accruing interest at 5% and also convertible at the same share price.
The project benefits from extensive preliminary work, including trenching, scout drilling, and metallurgical testing, alongside a feasibility study. Plans are in place for a copper flotation plant capable of processing 1,000 tons per day, intended to operate concurrently with ongoing resource delineation efforts.
CMR emphasizes that the deposit’s shallow depth and its advantageous location relative to existing infrastructure—including roads, power lines, and water sources—are likely to minimize both development and operational expenses.
Russell Tucker, who has recently joined CMR’s board as a non-executive director, remarked on the deposit’s favorable characteristics, noting parallels with other enduring, low-cost copper operations. He highlighted the potential for renewable energy sources, particularly solar, to power the mining operations.
Chief Executive Officer Charlie Long expressed enthusiasm for the project, stating that despite exploring multiple copper-silver ventures, this particular deposit has always remained the primary focus.
This latest joint venture follows CMR’s successful funding round in March, during which the company secured a £2.5 million investment from Gilini Holdings to support its Moroccan activities. The initial payment of £425,000 was received, with additional payments scheduled for later in 2025 and early 2026.
Morocco is rich in untapped critical mineral reserves essential for the clean energy transition. Recent studies suggest the country possesses significant quantities of materials vital for lithium-ion batteries, including substantial reserves of phosphates, manganese, cobalt, nickel, and copper. There is also growing interest in the exploration of rare earth elements within the country.
The Office of Hydrocarbons and Mines (ONHYM) has been intensifying its exploration initiatives, with 44 projects conducted in 2024 focusing on strategic materials throughout Morocco's most promising regions. ONHYM has identified three primary types of rare earth deposits, indicating a robust potential for future mineral extraction.
On Friday, following the announcement of the joint venture, shares in Critical Mineral Resources saw a notable increase of 13%, rising to 1.30 pence in London.
