Critical Resources (ASX:CRR) raises $1.2M to boost exploration efforts

Lithium exploration and project development company Critical Resources has completed a $1.2 million capital raising initiative.

The funds were secured through the issue of 200 million ordinary shares at $0.006 per share, accompanied by a 1-for-2 free attaching option exercisable at 1.5 cents each.

The capital raised will primarily support the company's Mavis Lake exploration programs, including a maiden drilling initiative at its Northern prospects.

Additionally, the funds will be allocated for general working capital purposes.

Directors Robert Martin, John Markovic, and Nigel Broomham have also committed $100,000 collectively to the placement, pending shareholder approval.

"The successful raising will enable us to advance our summer drilling activities targeting the Northern Prospects of the Gullwing and Tot pegmatites, and the Eastern zone of the Mavis Lake Main Project," said company Chairman Robert Martin.

The placement price of $0.006 per share represents a 14.3% discount to the last traded price of $0.007.

Sixty Two Capital acted as the sole lead manager for the placement and will receive a 6% fee on the gross amount raised, along with 12 million unlisted options.

Shareholders' approval for the director participation and lead manager options will be sought at a general meeting expected to be held in late September.

Following approval, the director participation shares, options, and lead manager options are anticipated to be issued by early October.