Critical Metals to Rent & Potentially Acquire Processing Plant

Critical Metals to Rent & Potentially Acquire Processing Plant


Critical Metals has entered into a non-binding term sheet with Katanga Strategic Resources and Operations. The term sheet outlines the potential acquisition of the Kastro Plant assets, a hydrometallurgical plant in Lubumbashi, Democratic Republic of the Congo (DRC), for US$8 million.


Critical Metals, with a 70% stake in the Molulu copper/cobalt project in the DRC, plans to initially rent the Kastro Plant for six months, with an option to extend the lease. The Molulu Project is situated 98 kilometers from the Kastro Plant. Renting the Kastro Plant would enable Critical Metals to process ore from the Molulu Project.

The Kastro Plant can process 12,000 tonnes per month of copper oxide/cobalt ore, producing 400 tonnes of LME-grade 99.99% copper cathode and 200 tonnes of LME-grade 30% cobalt hydroxide. Current market prices are approximately $8,000 per tonne for LME copper and $33,000 per tonne for LME cobalt.

CEO Statement

CEO Russell Fryer emphasized the strategic importance of the potential acquisition and its alignment with the company’s growth strategy. The acquisition would allow for full processing of Molulu copper and cobalt ores, improving margins. Funding for the Kastro Plant transaction may come from debt to minimize shareholder dilution.

Funding & Conditions

Debt will be raised from financial institutions for the Kastro Plant acquisition. Conditions for the transaction include due diligence in various areas, agreement on legal documentation, and necessary approvals.


A binding Purchase Agreement is targeted for 31 December 2023. Refitting the Kastro Plant is projected to take 45 days post-funding, with the first copper cathode production expected 30 days after refurbishment.

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