CRML raising US$22.5m to advance European Lithium and rare earth ambitions

Critical Metals Corp, close to 75% owned by ASX-listed European Lithium, raised US$22.5m to advance its critical mineral ambitions
Greenland rare earths and Austrian lithium key assets
Chinese export bans put further focus on western rare earth industry

Special Report: Critical Metals Corp is raising US$22.5m by way of a private placement to fund the development plans for its critical mineral assets across Greenland and Austria.

The largely European Lithium (ASX:EUR)-held company expects the private investment in public equity financing (PIPE) could close by the time the Nasdaq shuts for the weekend.

Critical Metals Corp (Nasdaq:CRML) hit US markets early last year with European Lithium’s Wolfsberg project in tow in exchange for what was then worth US$750m in CRML shares.

Despite a general malaise in lithium markets, the successful listing underscored an emerging US appetite for critical mineral assets.

CRML then upped its stake in the European space with the acquisition of a chunk of a giant Greenland Tanbreez rare earth project put in the spotlight after Donald Trump’s talk of acquiring the autonomous territory from Denmark.

Critical Metals Corp CEO and chairman of both companies Tony Sage said it was another key milestone towards become a leading western supplier of critical metals, fresh off the heels of further Chinese export bans.

“Funds raised through the PIPE will support our efforts in developing both Tanbreez, a game-changing rare earth asset in Greenland, and our Wolfsberg Lithium Project, the first fully permitted lithium mine in Europe,” Sage said.

“We look forward to welcoming the support of our new investors with deep experience in the metals and mining arena and delivering long-term value to all of our shareholders.”

Speaking for the ASX-lister, Sage said it was exciting that EUR’s holding has been underpinned by the placement.

“At US$5 per share, EUR’s holding in CRML at the placement price is worth approximately $600 million which represents $36.66 per share,” he said.

Critical holding

Martin Place Securities believes the CRML listing paved the way for it to become a key part of UC indices, and that the Tanbreez acquisition could lead to a rerate for both it and EUR.

The companies have other critical metals irons in the fire, with an Irish lithium project also in the portfolio alongside plans for a potential lithium refinery in Saudi Arabia.

But despite Wolfsberg being fully permitted and expected by its owners to become Europe’s next major producer, Tanbreez stands as the flagship asset.

Interest in gallium has notably surged in recent times after China introduced export controls on the commodity, a critical component in semiconductors.

Long before Trump, US President Harry Truman once proposed purchasing Greenland’s purchase as a defence against Soviet bombers, but it now has a different strategic (and financial) importance as a massive potential source of critical minerals.

This article was developed in collaboration with European Lithium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.