Critical Metals Corp raises $2 million from warrant exercise

Published 29/05/2025, 14:02
Critical Metals Corp raises $2 million from warrant exercise

NEW YORK - Critical Metals Corp (NASDAQ:CRML), a mining company focusing on critical minerals, announced today the successful exercise of outstanding warrants, which has brought in gross proceeds of approximately $2 million. This financial move involved the purchase of 400,000 ordinary shares at $5.00 per warrant, originally issued during the company’s initial public listing on Nasdaq. The company, currently valued at $147 million, maintains a moderate debt-to-equity ratio of 0.08, though InvestingPro data shows a concerning current ratio of 0.01, indicating potential short-term liquidity challenges.

The transaction also included the lifting of contractual restrictions on an additional 1.2 million ordinary shares, previously subject to forfeiture. Critical Metals Corp aims to allocate the net proceeds primarily towards advancing the development of its mineral projects in Greenland and Europe.

Tony Sage, CEO and Executive Chairman of Critical Metals Corp, expressed satisfaction with the completion of the warrant exercise, interpreting it as a sign of investor confidence in the company’s strategic direction. "This transaction demonstrates investor confidence in our strategic direction and helps strengthen our balance sheet to advance key milestones at our world-class assets," Sage stated.

Critical Metals Corp’s flagship Tanbreez Project in Greenland is considered one of the world’s largest rare earth deposits, with the advantage of year-round direct shipping access via deep water fjords to the North Atlantic Ocean. Additionally, the company’s Wolfsberg Lithium Project in Austria is the first fully permitted mine in Europe, strategically positioned to become a significant lithium producer for the European market.

The company is poised to become a reliable supplier of critical minerals essential for defense applications, the clean energy transition, and next-generation technologies in the western world. The shares and warrants were issued under an exemption from the registration requirements of the Securities Act, according to Section 4(a)(2) thereof.

This news is based on a press release statement from Critical Metals Corp.

In other recent news, Critical Metals Corp announced significant executive changes and a shareholder lockup agreement. Sergey Savchenko has been appointed as the new Chief Financial Officer, bringing 24 years of U.S. public markets experience to the role. George Karageorge will serve as Chief Technical Officer, Thomas McNamara as Director of Corporate Development & Investor Relations, and John Thomas as General Counsel. These appointments are effective immediately and aim to strengthen the company’s leadership team. Additionally, Critical Metals Corp has secured a binding agreement with its majority shareholders, European Lithium Limited and Rimbal, to lock up their shares for 180 days. This agreement reflects the shareholders’ confidence in the company’s long-term prospects. The company has also issued 5 million shares to Rimbal as part of the acquisition terms for the Tanbreez project. Critical Metals Corp has the option to increase its stake in the Tanbreez project to 92.5% following a $10 million exploration investment by the end of 2025.

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