European Lithium Unlocks $2.7M From CRML Stake, Holding Now Worth $436M
European Lithium has sold 0.5 million shares of Critical Metals Corp to a US institutional investor for approximately US$1.8 million, underscoring the significant value of its remaining stake.
- Sale of 0.5 million CRML shares for US$1.8 million at a 10% discount
- Remaining 62.5 million CRML shares valued at approximately US$284 million
- European Lithium’s CRML holding worth about A$436.5 million, far exceeding EUR’s market cap
- CRML’s Wolfsberg Lithium Project positioned as a key European lithium supplier
- Transaction highlights strategic value of European Lithium’s investment in critical metals
European Lithium’s Strategic Share Sale
European Lithium Ltd (ASX, EUR) has taken a modest step to monetise part of its substantial investment in Critical Metals Corp (Nasdaq, CRML), selling 0.5 million shares in an off-market transaction to a US institutional investor for approximately US$1.8 million (around A$2.7 million). The sale price of US$3.60 per share represents a 10% discount to CRML’s recent Nasdaq closing price, reflecting a negotiated deal rather than a market sale.
Valuation Highlights the Investment’s Scale
Despite this partial sale, European Lithium retains a commanding 62.5 million shares in CRML, which at the latest closing price of US$4.54 per share, values the holding at roughly US$284 million (A$436.5 million). This figure dwarfs European Lithium’s own market capitalisation, underscoring the latent value embedded in its CRML stake. Executive Chairman Tony Sage emphasised that this transaction highlights the significant worth of the company’s investment, equating to about 30 cents per EUR share.
Critical Metals Corp’s Growing Strategic Footprint
Critical Metals Corp is carving out a vital role in the supply of critical minerals essential for electrification and next-generation technologies, with flagship projects like the Tanbreez rare-earth deposit in Greenland and the Wolfsberg Lithium Project in Austria. Wolfsberg, in particular, is well positioned to become Europe’s first fully permitted lithium mine, supported by established infrastructure and strategic partnerships. This positions CRML as a key player in the continent’s clean energy transition and defense supply chains.
Implications for European Lithium and Investors
European Lithium’s partial divestment may signal a strategic move to crystallise some value while maintaining exposure to CRML’s growth potential. The proceeds could provide liquidity for European Lithium’s own exploration and development activities across Austria, Ireland, Ukraine, and Australia. For investors, the stark contrast between EUR’s market cap and the value of its CRML holding invites questions about potential re-rating or further monetisation strategies.
Looking Ahead
As Critical Metals Corp advances its projects, particularly Wolfsberg, the value of European Lithium’s stake could appreciate further. Meanwhile, the market will watch closely for any future share sales or strategic decisions by European Lithium that might unlock additional shareholder value.
Bottom Line?
European Lithium’s partial CRML share sale unlocks immediate value while spotlighting a vast unrealised asset that could reshape its market standing.
Questions in the middle?
- Will European Lithium pursue further sales of its CRML shares or hold for long-term growth?
- How will Critical Metals Corp’s Wolfsberg project progress impact the valuation of EUR’s stake?
- Could European Lithium’s market capitalisation adjust to reflect the value of its CRML holdings?
