European Lithium Raises A$124m From CRML Share Sale, Strengthening Balance Sheet
ASX-listed European Lithium has further strengthened its balance sheet after selling an additional five million shares in US-listed Critical Metals Corp (CRML), generating net proceeds of approximately A$124 million.
The transaction has increased European Lithium’s cash reserves to around A$322 million, enhancing the company’s financial flexibility.
Despite the sale, European Lithium remains a major shareholder in CRML, retaining 48 036 338 ordinary shares. Based on CRML’s closing share price of $17.17 per share on January 20, the remaining stake is valued at approximately $824.8 million, or about A$1.23 billion, subject to daily market movements.
European Lithium executive chairperson Tony Sage said the transaction highlighted the significant value generated through the company’s exposure to the Tanbreez rare earths project in Greenland.
“This transaction again proves our investment in the Tanbreez project has been a huge success, and hopefully the EUR share price will finally reflect its true asset value,” Sage said.
He added that the sale provides the company with increased financial flexibility while preserving substantial exposure to CRML.
“The proceeds will further strengthen our balance sheet and position the company to continue advancing its core projects, pursue new opportunities or return capital to shareholders,” he said.
European Lithium is an exploration and development-stage mining company with a primary focus on lithium assets in Austria, Ukraine and Ireland.
Beyond its interest in Tanbreez, the company holds a diversified portfolio that includes copper, gold and bismuth exposure through CUFE in the Northern Territory, uranium exposure in Tanzania via MOAB, and an interest in Cyclone Metals’ Iron Bear iron ore project in Canada.
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