Critica Strengthens Cash Position with R&D Tax Refund

Highlights:

• Critica receives refund under the R&D Tax Incentive Program.

• Refund supports ongoing metallurgical and satellite drilling programs at the Brothers Clay Hosted Rare Earth Project.

• The company continues to advance its beneficiation testwork, focused on rare earth mineralisation.

Critica (ASX:CRI), a company involved in the exploration and development of critical mineral deposits, has received a significant refund from the Australian Tax Office under the Research and Development (R&D) Tax Incentive Program. The company’s refund comes as part of the government’s ongoing effort to encourage research and development activities within Australian industries. The R&D Tax Incentive Program plays a crucial role in supporting innovation across various sectors, providing financial relief to businesses undertaking R&D projects.

Cash Position Enhancement

The refund serves as a boost to Critica’s cash reserves, reinforcing its financial position and providing the necessary funds to continue its work at the Brothers Clay Hosted Rare Earth Project. Managing Director Philippa Leggat has expressed that this added funding will help sustain the company’s efforts in metallurgical testwork and satellite drilling programs, both of which are essential components of the ongoing exploration and development activities at the project site.

Advancing Metallurgical Testwork

Critica’s metallurgical testwork is progressing as part of its broader strategy to enhance the beneficiation process at the Brothers Project. The company has previously disclosed initial beneficiation results, which revealed the ability to upgrade mineralisation significantly while reducing the material mass to a fraction of its original size. This testwork continues with the aim of refining the processes and eventually producing mixed rare earth carbonate, a key component for further processing and application in modern technologies.

Philippa Leggat highlighted that the metallurgical workstreams are designed to build on the strong early results the company has achieved. The ongoing efforts are intended to ensure that Critica can establish a solid foundation for future project development.

Strategic Focus on Intellectual Property

The company’s commitment to advancing its own intellectual property for processing is central to its strategy. Critica has been building a robust geological and metallurgical dataset, created through rigorous technical work. This dataset forms the backbone of the company’s approach to developing proprietary processes for rare earth mineralisation, which is integral to the Brothers Project’s success.

Leggat also emphasized that future R&D claims would likely include metallurgical testwork as part of the ongoing commitment to refining the company’s processes. This work is considered a critical element in the broader strategy of advancing the Brothers Project, especially in terms of de-risking the development of the rare earth resources it aims to unlock.

Government Support for Junior Resource Companies

Philippa Leggat expressed gratitude towards the Australian Government for facilitating the R&D rebate program. According to Leggat, the support provided by the government adds significant value to the resource sector, particularly for junior companies like Critica. Such initiatives enable companies to fund early-stage technical work, which can be pivotal in shaping the future economics of projects, particularly those in the resource sector.

The Brothers Project

The Brothers Project, which includes the Jupiter Project, is a rare earth discovery situated in Yalgoo, Western Australia. The project, first announced in 2023, is located within an established mining precinct, offering logistical advantages for development. The Jupiter Project is part of Critica’s broader strategy to contribute to the global demand for critical minerals, which are integral to modern technologies ranging from electronics to renewable energy solutions.

Critica remains focused on advancing its exploration and development efforts, with a particular emphasis on building a strong technical and economic foundation for its projects. The company’s approach is centered on advancing its R&D efforts, which continue to shape the future of its assets.