EUR Sells 3.85M CRML Shares at 12% Discount for US$50 Million
European Lithium has sold 3.85 million shares of Critical Metals Corp. for US$50 million, reinforcing its strategic stake in a company with assets vital to Europe's clean energy future.
- EUR sells 3.85 million CRML shares for US$50 million
- Sale price reflects a 12% discount to recent Nasdaq closing price
- CRML’s market valuation significantly exceeds EUR’s own market cap
- CRML’s key assets include Greenland’s Tanbreez rare-earth project and Austria’s Wolfsberg Lithium Project
- Transaction highlights growing demand for critical metals in electrification and defense sectors
Strategic Share Sale
European Lithium Limited (ASX – EUR) has announced the sale of 3.85 million shares in Critical Metals Corp. (Nasdaq – CRML) to a US institutional investor for approximately US$50 million (A$76 million). The transaction was conducted off-market at a price of US$13 per share, representing a 12% discount to CRML’s recent Nasdaq closing price of US$14.98. This move provides EUR with significant liquidity while maintaining a substantial equity interest in CRML.
Valuation and Market Context
Critical Metals Corp. currently boasts a market valuation of around US$854 million (A$1.29 billion), which notably surpasses European Lithium’s own market capitalisation. EUR’s remaining holding in CRML, valued at the recent Nasdaq closing price, equates to approximately A$0.89 per EUR share. This underscores the strategic importance of CRML’s assets within EUR’s portfolio and the broader critical metals sector.
Key Assets Driving Growth
CRML’s flagship project is the Tanbreez rare-earth deposit in Greenland, one of the world’s largest of its kind, positioning the company as a key player in supplying materials essential for electrification and next-generation technologies. Additionally, the Wolfsberg Lithium Project in Austria is the first fully permitted lithium mine in Europe, strategically located with strong infrastructure access. These assets align with growing demand for critical minerals in clean energy and defense applications, particularly across Europe and allied markets.
Implications for European Lithium
European Lithium’s Executive Chairman Tony Sage highlighted the strong demand for CRML shares, noting the large trading volumes on Nasdaq as a sign of investor confidence. The sale provides EUR with capital to potentially accelerate its own development projects or pursue further strategic opportunities, while retaining a significant stake in CRML’s promising growth trajectory.
Looking Ahead
This transaction reflects a broader trend of consolidation and capital recycling within the critical metals sector, as companies position themselves to meet the surging demand for minerals essential to the clean energy transition. Investors will be watching closely to see how EUR deploys the proceeds and whether further share sales or strategic partnerships emerge.
Bottom Line?
European Lithium’s share sale unlocks capital while keeping a firm grip on a rising critical metals star.
Questions in the middle?
- What are European Lithium’s plans for deploying the US$50 million proceeds?
- Will EUR consider further share sales or strategic partnerships with CRML?
- How will CRML’s project developments impact EUR’s valuation and market position?