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

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

Under the terms, CRML is issuing 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-tonne Tanbreez rare earth deposit in Greenland.

Last week, Critical Metals signed a letter of intent with US-based rare earth processor REalloys for a 10-year offtake agreement covering 15% of production from Tanbreez — the world’s largest deposit for mining heavy and medium rare earths.

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.

In addition to Tanbreez, Critical Metals also owns the Wolfsberg lithium project in Austria, which it describes as Europe’s first fully permitted lithium mine.

Critical Metals’ stock was down 4.9% in after hours trading in New York. The New York-based company has an approximate $2 billion market capitalization.