Critical One Extends Payment Terms to Star Minerals

Rhea-AI Summary

Critical One Energy (CSE: GREN, OTCQB: MMTLF) has modified its Earn-In and Exploration Rights Agreement with Star Minerals (ASX: SMS). Under the revised terms, Star Minerals has completed partial payment consisting of US$75,000 cash and US$200,000 in shares, including 5,227,118 Ordinary Shares, 2,466,667 Tranche 1 Performance Shares, and 1,850,000 Tranche 2 Performance Shares. The remaining US$225,000 cash payment has been extended to March 8, 2025, coinciding with planned drilling activities at the Cobra Uranium project in Q1 2025.

Positive

• Received immediate partial payment of US$75,000 cash
• Secured US$200,000 in Star Minerals shares and performance shares
• Drilling at Cobra Uranium project scheduled for Q1 2025

Negative

• Delayed receipt of US$225,000 cash payment to March 2025
• Payment terms extension indicates possible cash flow constraints from Star Minerals

TORONTO, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Critical One Energy Inc. (formerly Madison Metals Inc.) (“Critical One”) (CSE: GREN) (OTCQB: MMTLF) (FSE: 4EF0) announces a variation to its Earn-In and Exploration Rights Agreement (“Agreement”) with Star Minerals Limited (“Star Minerals”) (ASX: SMS). This amendment enhances payment flexibility while preserving the strategic interests of both parties.

Under the revised terms, Star Minerals has paid US$75,000 and issued US$200,000 in Star Shares and Performance Shares, as part of the First Payment. In total, Critical One has received:

1. 5,227,118 Ordinary Shares
2. 2,466,667 Tranche 1 Performance Shares
3. 1,850,000 Tranche 2 Performance Shares
   

Additionally, the remaining US$225,000 of the First Payment’s cash component is now due on or before March 8, 2025. This extension aligns exploration and development activities that are being planned with drilling at the Cobra Uranium project commencing within Q1 2025.

About Critical One Energy Inc.

Critical One Energy Inc. (formerly Madison Metals Inc.) is a forward-focused critical minerals and upstream energy company, powering the future of clean energy and advanced technologies. Backed by seasoned management expertise and prime resource assets, Critical One is strategically positioned to meet the rising global demand for critical minerals and metals. Its mine exploration portfolio is led by antimony in Canada and uranium in Namibia, Africa. By leveraging its technical, managerial, and financial expertise, the Company upgrades and creates high-value projects while joint venturing non-core assets to generate cash flow, driving growth and delivering value for its shareholders.

Additional information about Critical One Energy Inc. can be found at madisonmetals.ca and on the Company’s SEDAR+ profile at sedarplus.ca.

For further information, please contact:
Duane Parnham
Executive Chairman & CEO
Critical One Energy Inc.
+1 (416) 489-0092
ir@madisonmetals.ca

Media inquiries:
Adam Bello
Manager, Media & Analyst Relations
Primoris Group Inc.
+1 (416) 489-0092
media@primorisgroup.com

Neither the CSE nor CIRO accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking information contained in this press release includes, but is not limited to, statements relating to the terms and timing of the private placement described in this press release and the anticipated uses of the proceeds raised from such private placement.

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that the Company will update its OTCQB and FSE trading symbols.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, the risk that the Company will not be able to proceed with the issuance of units on the terms described in this press release or at all; and that the Company will not have the necessary resources, financial or otherwise, to conduct the planned exploration activities referenced in this press release.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

FAQ

What are the new payment terms between Critical One Energy and Star Minerals for MMTLF shareholders?

Star Minerals has paid US$75,000 cash and US$200,000 in shares, with the remaining US$225,000 cash payment extended to March 8, 2025.

How many shares did Critical One (MMTLF) receive from Star Minerals in the agreement?

Critical One received 5,227,118 Ordinary Shares, 2,466,667 Tranche 1 Performance Shares, and 1,850,000 Tranche 2 Performance Shares.

When is drilling scheduled to begin at Critical One's (MMTLF) Cobra Uranium project?

Drilling at the Cobra Uranium project is scheduled to commence within Q1 2025.

What is the total value of the First Payment in the Critical One (MMTLF) and Star Minerals agreement?

The First Payment totals US$500,000, comprising US$300,000 in cash (US$75,000 paid, US$225,000 pending) and US$200,000 in shares.