CRML Raises $50M for Rare Earths as European Lithium Offloads $50M Stake
European Lithium has offloaded an additional US$50 million worth of Critical Metals Corp shares, coinciding with CRML’s own US$50 million capital raise to advance its Greenland rare earth project.
- European Lithium sells 3.03 million CRML shares at US$16.50 each
- CRML completes a US$50 million private placement for Tanbreez Rare Earth Project
- European Lithium holds over 53 million CRML shares valued at approximately US$1.2 billion
- Significant valuation gap between European Lithium’s market cap and its CRML shareholding
- CRML’s projects focus on rare earths and lithium critical for clean energy and defense
European Lithium’s Strategic Share Sale
European Lithium Limited (ASX – EUR) has announced the sale of an additional 3.03 million shares in Critical Metals Corp (NASDAQ – CRML) to a single US institutional investor at US$16.50 per share. This off-market transaction generated net proceeds of approximately US$50 million (around A$76 million) for European Lithium. Alongside the shares, pre-funded warrants to purchase roughly 1.56 million CRML shares were also sold, underscoring a significant capital movement between the two entities.
CRML’s Concurrent Capital Raise
In tandem with European Lithium’s share sale, Critical Metals Corp completed a private placement raising approximately US$50 million. The funds are earmarked to accelerate development of CRML’s flagship Tanbreez Rare Earth Project in Greenland, one of the world’s largest rare earth deposits. This capital injection is a clear signal of investor confidence in CRML’s strategic positioning within the critical metals sector, particularly as demand for rare earth elements surges globally due to electrification and clean energy transitions.
Valuation Discrepancies and Strategic Implications
European Lithium currently holds over 53 million shares in CRML, which, at CRML’s US$22.72 closing price on Nasdaq as of 16 October 2025, values this stake at approximately US$1.2 billion (A$1.85 billion). This valuation translates to about A$1.23 per European Lithium share, substantially higher than European Lithium’s own market capitalization despite recent share price gains. Executive Chairman Tony Sage acknowledged this discrepancy and indicated that European Lithium is exploring strategic options to better reflect the intrinsic value of its CRML holdings. With over A$190 million in cash reserves, European Lithium appears well-positioned to pursue these options.
CRML’s Growing Role in Critical Metals Supply
Critical Metals Corp is carving out a significant role as a supplier of essential minerals for defense, clean energy, and next-generation technologies. Beyond the Greenland-based Tanbreez project, CRML’s Wolfsberg Lithium Project in Austria is notable for being Europe’s first fully permitted lithium mine, strategically located with established infrastructure and poised to supply key lithium products to European markets. CRML’s portfolio and partnerships position it as a vital player in the evolving geopolitical landscape of critical minerals.
Looking Ahead
As CRML advances its rare earth and lithium projects with fresh capital, and European Lithium navigates the valuation gap of its CRML stake, the coming months will be pivotal. Market watchers will be keen to see how European Lithium’s strategic options unfold and how CRML’s project developments translate into operational milestones and market value.
Bottom Line?
European Lithium’s share sale and CRML’s capital raise mark a critical juncture in unlocking value amid rising demand for rare earths and lithium.
Questions in the middle?
- What strategic options will European Lithium pursue to address the valuation gap?
- How will CRML allocate the US$50 million to accelerate the Tanbreez project development?
- What impact will CRML’s project progress have on European Lithium’s share price and market perception?
