Critical Metals secures $50M to fund rare earth project in Greenland 

Critical Metals Corp. (Nasdaq: CRML) announced Thursday that it has entered into a securities purchase agreement with an un-named institutional investor to raise $50 million gross proceeds via a private investment in public equity (PIPE) transaction.  

Under the terms, CRML is issuing, for an aggregate purchase price of $50 million, an aggregate of 1.47 million ordinary shares and pre-funded warrants to purchase an aggregate of approximately 1.56 million shares. 

The company said it intends to use the net proceeds from the offering to help fund the development of its 4.7 billion metric ton rare earth deposit, Tanbreez, in Greenland. 

The Tanbreez project in Greenland is one of the world’s largest heavy and medium rare earth deposits. The New York-based company also owns the Wolfsberg lithium project in Austria, which it describes as Europe’s first fully permitted lithium mine. 

Last week, Critical Metals signed a letter of intent with US-based rare earth processor REalloys for a ten-year offtake agreement covering 15% of production from Tanbreez. 

That deal followed an August agreement with Ucore Rare Metals for 10% of Tanbreez’s output, bringing its total committed offtake to 25% of expected production. 

“This financing further strengthens our balance sheet and demonstrates continued investor confidence in Critical Metals Corp as we advance our strategic portfolio of critical mineral assets,” CEO Tony Sage said in a news release. 

 “The proceeds will support our development efforts at Tanbreez, one of the world’s largest rare earth deposits in Greenland, which is expected to help address the growing demand for heavy rare earths in the West,” Sage said.  

“We are pleased to welcome the support of our investors as we work to become a reliable supplier of critical minerals.” 

CRML stock was down 4.9% in after hours trading in New York. The company has a $2.01 billion market capitalization.