Critical Metals Corp raises $35 million in private placement

NEW YORK - Critical Metals Corp. (NASDAQ:CRML) announced Monday it has secured $35 million in gross proceeds through a private investment in public equity (PIPE) transaction with an institutional investor. The company’s stock, currently trading at $7.98, has shown remarkable momentum with a 439% surge over the past six months, according to InvestingPro data.

The mining company will issue 5 million ordinary shares and warrants to purchase an additional 10 million shares at a strike price of $7.00 per share, with the warrants expiring six years from their issue date.

Critical Metals plans to use the net proceeds to advance development of its Tanbreez rare earth deposit in Greenland, which the company reports contains 4.7 billion metric tons of rare earth elements.

"This financing from a fundamental institutional investor further validates the opportunities ahead for Tanbreez and Critical Metals Corp and underscores the growing need for heavy rare earths in the West," said Tony Sage, CEO and Executive Chairman of Critical Metals Corp.

The PIPE transaction is subject to customary closing conditions. Jett Capital Advisors, LLC and Cohen & Company Capital Markets acted as placement agents, while Clear Street served as financial advisor.

Critical Metals Corp focuses on mining development for critical metals and minerals needed for electrification and next-generation technologies. Besides Tanbreez, the company’s portfolio includes the Wolfsberg Lithium Project in Austria, which it describes as the first fully permitted lithium mine in Europe. With a current market capitalization of $826.75M and revenue of $0.48M, analysts at InvestingPro indicate the stock may be trading above its Fair Value. Unlock 8 additional key insights and detailed financial metrics with an InvestingPro subscription.

The securities being sold in the private placement have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

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

In other recent news, Critical Metals Corp has revised its agreement to acquire the Tanbreez Greenland Rare Earth Mine, increasing its ownership stake from 42% to 92.5%. This amendment involves issuing approximately 14.5 million ordinary shares to Rimbal Pty Ltd, valuing each share at $8.00. Meanwhile, Clear Street has initiated coverage of Critical Metals with a Buy rating and a price target of $12.00, based on projected earnings for the fiscal year ending in June 2029. Additionally, Critical Metals reported consistent rare earth mineralization in its 2024 drilling program at the Fjord Deposit, with significant grades of Total Rare Earth Oxide and zirconium oxide.

In a strategic move, Ucore Rare Metals Inc. has signed a non-binding Letter of Intent with Critical Metals for a 10-year supply agreement of heavy rare earth element feedstock from the Tanbreez Project. This feedstock will support Ucore’s operations in Louisiana and Ontario. Furthermore, Critical Metals has appointed Mathias Barfod as President of Greenland Operations to oversee the scale-up of the Tanbreez Project and manage local community relations. These developments highlight Critical Metals’ ongoing efforts to expand its operations and strengthen its position in the rare earth market.

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