- Critical Metals Corp listing on Nasdaq takes the Wolfsberg lithium project closer towards commercialisation
- Listing injects value into European Lithium with the upcoming issue of US$750m worth of CRML shares
- Major stake in CRML ensures the EUR retains exposure to any Wolfsberg upside
The listing of Critical Metals Corp on Nasdaq under the ticker CRML yesterday marks a major milestone in the 12-year journey that executive chairman Tony Sage has taken with the flagship Wolfsberg lithium project in Austria.
Introduced by Nasdaq global head of listing Karen Snow as a leading mining company focused on critical metals and minerals that will fuel next generation technologies by producing materials essential to electrification in a sustainable way, CRML came about via a merger of European Lithium’s (ASX:EUR) Wolfsberg project and special purpose acquisition company Sizzle Acquisition Corp.
The successful listing underscored the emerging appetite possessed by US investors for critical mineral assets despite the metals and mining sector losing ground over the last decade and the current general malaise faced by the lithium market.
Jett Capital Advisors partner Matt Jurjevich told Stockhead’s Jessica Cummins earlier this month that several mining companies, including Sigma Lithium (NASDAQ:SGML) and Lithium Americas (NYSE:LAC), have transformed into significantly better supported equities since listing in the US.
This is due to increased awareness about the demand for critical minerals as well as the lack of listed competitors.
Shareholders of EUR will continue to have strong exposure to the project through the US$750m ($1,153m) worth of CRML shares that will be issued to the company.
This not only gives EUR a major stake in CRML and corresponding exposure to any upside from the development of Wolfsberg, it also represents a massive uptick in value given that the company was capitalised at just under $120m before it went into voluntary suspension on 6 February 2024.
A 12-year journey to realise real value
For Sage, the listing of CRML marks a major development in the 12 year journey that he has taken with the Wolfsberg project that first started with a 3AM phone call from his friend in Austria.
After initially putting the phone down on his friend, he was eventually convinced to fly to Austria to see the mine and he immediately saw the potential.
Wolfsberg was vested into Paynes Find Gold in 2016, which subsequently changed its name to European Lithium the same year.
The project in Carinthia 270km south of Vienna was subsequently developed into Europe’s first fully permitted lithium mine with a resource of 12.9Mt at 1% Li2O.
This is backed by DFS highlighting the economic viability of a 8,800tpa lithium hydroxide monohydrate production operation and a binding offtake agreement with top-tier car manufacturer BMW.
EUR subsequently entered into a business combination with Sizzle Acquisition Corp in 2023 to combine Wolfsberg with Sizzle to form CRML and the rest as they say is history.
The (lithium) road goes ever on
However, the listing of CRML is hardly the culmination of Sage’s association with the Wolfsberg project.
“So this has been a 12-year pet project for me. I think this is going to be launching pad for CRML and for the project for the next 10 years,” he told the audience at CRML’s listing.
The greater access to capital in the US – and investors who are still keen on lithium – is expected to enable CRML to commercialise Wolfsberg.
At Stockhead we tell it like it is. While European Lithium is a Stockhead advertiser, it did not sponsor this article.