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US Critical Metals PLC (USCMF) has announced its decision to rent and eventually acquire 100% of a hydrometallurgical plant in the Democratic Republic of the Congo.
Deal with Kastro
The deal with Katanga Strategic Resources & Operations Sarl, or Kastro, is expected to transform the company and create significant shareholder value.
Under the agreement, US Critical Metals will acquire all assets related to the Kastro Plant for $8 million. The plant, located in Lubumbashi, serves as the main industrial center of the southeast.
Payment and Rent Details
The payment will consist of $7.5 million upon completion of the transaction, with a hold back of $500,000 for claims for nine months. US Critical Metals will rent the plant for an initial six-month period, with an option for lease extension if necessary.
The company plans to operate the plant and use it to process copper oxide and cobalt ore from the Molulu project, in which US Critical Metals owns a 70% interest.
CEO Russell Fryer expressed his excitement about the transaction, stating it would ensure superior margins by allowing the company to get full value for processing Molulu copper and cobalt ores.
US Critical Metals plans to raise debt from financial institutions that have expressed interest in the acquisition to fund it. The company expects to enter a binding purchase agreement on or before December 31.
Company Website: https://uscmcorp.com
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