Critical Metals Raises $50 Million To Power Greenland Rare Earth Project

Critical Metals Corp. (NASDAQ:CRML) shares were trading higher on Thursday after it announced that it has entered into a securities purchase agreement with a major institutional investor. The stock has since given up its gains and is now trading lower by 2%.

According to the agreement, the company plans to raise $50 million in gross proceeds through a private investment in public equity (PIPE) transaction.

The company said it plans to use the net proceeds from the offering to support the development of its 4.7 billion metric ton Tanbreez rare earth deposit in Greenland, one of the world’s most significant known sources of rare earth minerals.

Also Read: Critical Metals Stock Rockets 1,000% — Investors Go All In

Under the terms, Critical Metals will issue 1.47 million ordinary shares and pre-funded warrants to purchase about 1.56 million additional shares for $50 million. The shares and warrants will be subject to resale registration rights.

Tony Sage, CEO and Chairman of Critical Metals Corp, said, “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.”

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

Key Off-Take Agreement Secured

Recently, Critical Metals announced that Blackboxstocks’ merger target, REalloys Inc., has entered into a letter of intent for a 10-year off-take agreement with the company.

The proposed agreement would see REalloys purchase 15% of the projected rare earth concentrate from Critical Metals’ flagship Tanbreez Project in Southern Greenland, one of the world’s largest heavy rare earth deposits.

This amounts to approximately 6.75 million metric tons of concentrate over the 10-year term. The deal aims to strengthen the North American rare earth supply chain, reducing reliance on China for materials crucial to national security and industry.

Price Action: CRML shares were trading lower by 2.10% to $22.18 at last check Thursday.

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