Critical Metals Corp. Announces $22.5 Million Private Placement Equity Financing
Critical Metals Corp (CRML) has secured a $22.5 million private placement equity financing through a PIPE transaction. The company will issue approximately 4.5 million ordinary shares at $5.00 per share, along with warrants to purchase an equal number of shares at $7.00, expiring in 4 years.
The funding will support development of the company's two pre-production mining assets: the Tanbreez Rare Earths Project in Greenland and the Wolfsberg Lithium Project in Austria. The transaction is expected to close around February 7, 2025. As part of the deal, the company agreed to remove anti-dilution provisions from certain senior convertible notes.
The private placement was conducted with accredited investors only, and the securities are not registered under the Securities Act. The company will file a registration statement for the resale of the PIPE shares and warrant shares.
Critical Metals Corp (CRML) ha ottenuto un finanziamento di private placement da 22,5 milioni di dollari tramite una transazione PIPE. L'azienda emetterà circa 4,5 milioni di azioni ordinarie a 5,00 dollari per azione, insieme a warrant per acquistare un numero uguale di azioni a 7,00 dollari, con scadenza di 4 anni.
I fondi supporteranno lo sviluppo dei due beni minerari in fase pre-produzione dell'azienda: il Progetto di terre rare Tanbreez in Groenlandia e il Progetto di litio Wolfsberg in Austria. Si prevede che la transazione si chiuda intorno al 7 febbraio 2025. Come parte dell'accordo, l'azienda ha accettato di rimuovere le disposizioni anti-diluzione da alcune note convertibili senior.
Il private placement è stato effettuato solo con investitori accreditati, e i titoli non sono registrati ai sensi del Securities Act. L'azienda presenterà una dichiarazione di registrazione per la rivendita delle azioni PIPE e delle azioni warrant.
Critical Metals Corp (CRML) ha asegurado un financiamiento de colocación privada de 22,5 millones de dólares a través de una transacción PIPE. La empresa emitirá aproximadamente 4,5 millones de acciones ordinarias a 5,00 dólares por acción, junto con garantías para comprar un número igual de acciones a 7,00 dólares, que vencerán en 4 años.
La financiación apoyará el desarrollo de los dos activos mineros en fase de preproducción de la empresa: el Proyecto de Tierras Raras Tanbreez en Groenlandia y el Proyecto de Litio Wolfsberg en Austria. Se espera que la transacción se cierre alrededor del 7 de febrero de 2025. Como parte del acuerdo, la empresa acordó eliminar las disposiciones de antidilución de ciertas notas convertibles senior.
La colocación privada se realizó únicamente con inversores acreditados y los valores no están registrados bajo la Ley de Valores. La empresa presentará una declaración de registro para la reventa de las acciones PIPE y las acciones de las garantías.
크리티컬 메탈스 코퍼레이션 (CRML)은 PIPE 거래를 통해 2,250만 달러의 사모펀드 주식 매각을 확보했습니다. 이 회사는 약 450만 주의 보통주를 주당 5.00달러에 발행하며, 또한 4년 만료되는 주당 7.00달러에 동일 수의 주식을 구매할 수 있는 워런트를 제공합니다.
이 자금은 회사의 두 개의 생산 이전 광산 자산인 그린란드의 탐브리즈 희토류 프로젝트와 오스트리아의 울프스버그 리튬 프로젝트 개발을 지원합니다. 이 거래는 2025년 2월 7일경 마감될 것으로 예상됩니다. 계약의 일환으로 회사는 특정 고급 전환사채에서 반희석 조항을 제거하기로 합의했습니다.
이번 사모펀드는 오직 자격을 갖춘 투자자와만 진행되었으며, 증권은 증권법에 따라 등록되지 않았습니다. 회사는 PIPE 주식 및 워런트 주식의 재판매를 위한 등록 신고서를 제출할 것입니다.
Critical Metals Corp (CRML) a sécurisé un financement par placement privé de 22,5 millions de dollars par le biais d'une transaction PIPE. L'entreprise émettra environ 4,5 millions d'actions ordinaires à 5,00 dollars par action, ainsi que des bons de souscription pour acheter un nombre égal d'actions à 7,00 dollars, avec une expiration dans 4 ans.
Le financement soutiendra le développement des deux actifs miniers en pré-production de l'entreprise : le projet de terres rares Tanbreez au Groenland et le projet de lithium Wolfsberg en Autriche. La transaction devrait être clôturée autour du 7 février 2025. Dans le cadre de l'accord, l'entreprise a accepté de supprimer les dispositions antidilution de certaines obligations convertibles senior.
Le placement privé a été réalisé uniquement avec des investisseurs accrédités, et les titres ne sont pas enregistrés en vertu de la loi sur les valeurs mobilières. L'entreprise déposera une déclaration d'enregistrement pour la revente des actions PIPE et des actions de bons de souscription.
Critical Metals Corp (CRML) hat eine private Platzierung im Wert von 22,5 Millionen Dollar durch eine PIPE-Transaktion gesichert. Das Unternehmen wird ca. 4,5 Millionen Stammaktien zu je 5,00 Dollar ausgeben, zusammen mit Warrants zum Kauf einer gleichen Anzahl von Aktien zu 7,00 Dollar, die in 4 Jahren ablaufen.
Die Finanzierung wird die Entwicklung der beiden Vorproduktions-Bergbauvermögen des Unternehmens unterstützen: das Tanbreez Rare Earths Project in Grönland und das Wolfsberg Lithium Project in Österreich. Die Transaktion soll etwa am 7. Februar 2025 abgeschlossen werden. Im Rahmen des Deals stimmte das Unternehmen zu, Antidilutivklauseln aus bestimmten vorrangigen wandelbaren Anleihen zu entfernen.
Die private Platzierung wurde nur mit akkreditierten Investoren durchgeführt, und die Wertpapiere sind nicht nach dem Securities Act registriert. Das Unternehmen wird eine Registrierungsanmeldung für den Weiterverkauf der PIPE-Aktien und der Warrantholdings einreichen.
- Secured $22.5 million in new funding
- Warrants issued at $7.00, representing 40% premium to offering price
- Strengthens balance sheet for development of two strategic mining projects
- Significant shareholder dilution through issuance of 4.5 million new shares
- Removal of anti-dilution provisions from senior convertible notes
- Additional potential dilution from warrant exercise
Insights
The $22.5M PIPE financing represents a strategic capital raise amid heightening geopolitical tensions over critical minerals, particularly following China's rare earth export restrictions. The financing structure reveals several key implications:
The pricing mechanics are noteworthy: shares priced at
The timing is particularly strategic given:
- Growing Western focus on securing critical mineral supply chains independent of China
- Europe's push for domestic lithium production, with Wolfsberg positioned as a first-mover
- Increasing geopolitical interest in Greenland's mineral resources
The removal of anti-dilution provisions from senior convertible notes suggests management's confidence in maintaining price stability post-financing. However, investors should monitor the warrant overhang, as it could create selling pressure if the stock trades above
The capital injection provides approximately 12-18 months of runway based on current burn rates, important for advancing both projects through critical development phases. The strategic importance of these assets, particularly in the current geopolitical climate, could attract further institutional interest and potential strategic partnerships.
The dual-asset strategy positions Critical Metals Corp at the intersection of two important mineral supply chains. The Tanbreez project in Greenland hosts significant rare earth deposits, particularly rich in heavy rare earths important for permanent magnets used in EVs and wind turbines. Its development timeline aligns with projected supply shortages in 2026-2027.
The Wolfsberg Lithium Project's fully permitted status is a important differentiator in Europe's rapidly evolving battery supply chain. With European lithium demand projected to increase 10-fold by 2030, the project's strategic location and permitted status provide significant competitive advantages.
The
- Advancing detailed engineering and optimization studies
- Completing key environmental and social impact assessments
- Initiating preliminary site works and infrastructure planning
The capital structure, while dilutive, provides essential funding for critical development milestones. The warrant structure could potentially accelerate development timelines if exercised, providing an additional
Strengthens balance sheet, enabling Critical Metals Corp to continue funding development plans for both the Tanbreez Rare Earths Project in Greenland and the Wolfsberg Lithium Project in Austria
NEW YORK, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp” or the “Company”), a leading mining development company focused on critical metals and minerals and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners, today announced that it has entered into a securities purchase agreement for a private investment in public equity (“PIPE”) financing that is expected to result in gross proceeds of approximately
Under the terms of the securities purchase agreement, the Company is issuing an aggregate of approximately 4.5 million ordinary shares (the “PIPE Shares”) issued at an Offer Price of
Critical Metals Corp plans to use the funds raised to continue funding development across the Company’s two pre-production mining assets and to pay expenses of the Company and for other general corporate purposes.
In connection with the PIPE transaction, the Company agreed to remove anti-dilution provisions from certain senior convertible notes of the Company contemplated to be issued upon closing of the issuance of such notes. The description of the senior convertible notes transaction was previously announced by the Company in a Report of Foreign Private Issuer on Form 6-K on January 22, 2025.
“On the heels of the Chinese export ban of rare earth materials and U.S. President Trump’s interest in Greenland, Critical Metals Corp has accomplished another key milestone by securing additional funding to support the continued execution of our vision to become a leading supplier of critical minerals to the West,” said Tony Sage, CEO and Chairman of Critical Metals Corp. “Funds raised through the PIPE will support our efforts in developing both Tanbreez, a game-changing rare earth asset in Greenland, and our Wolfsberg Lithium Project, the first fully permitted lithium mine in Europe. We look forward to welcoming the support of our new investors with deep experience in the metals and mining arena, and delivering long-term value to all of our shareholders.”
Advisors
Jett Capital Advisors, LLC, Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC and EAS Advisors, LLC, acting through Odeon Capital Group LLC, acted as Placement Agents to Critical Metals Corp. in the Financing. White & Case LLP are legal advisors to Critical Metals Corp. Morgan, Lewis & Bockius LLP served as legal counsel to the financial advisors.
The offer and sale of the PIPE Shares and PIPE Warrants are being made in a transaction not involving a public offering, and the securities have not been registered under the Securities Act of 1933 (the “Securities Act”), as amended, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and any other applicable securities laws. The PIPE Shares and PIPE Warrants were sold only to accredited investors and were not sold as part of a general solicitation. Critical Metals Corp has agreed to file a registration statement with the SEC registering the resale of the PIPE Shares and ordinary shares issuable upon exercise of the PIPE Warrants.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under securities laws of any such state or jurisdiction.
About Critical Metals Corp.
Critical Metals Corp (Nasdaq: CRML) is a leading mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners. Its flagship Project, Tanbreez, represents one of the world's largest, rare earth deposits located in Greenland. Another key asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio. With this strategic asset portfolio, Critical Metals Corp is positioned to become a reliable and sustainable supplier of critical minerals essential for defense applications, clean energy transition, and next-generation technologies in the western world.
For more information, please visit https://criticalmetalscorp.com/.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, without limitation, statements regarding the financial position, financial performance, business strategy, expectations of our business and the plans and objectives of management for future operations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “designed to” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors discussed under the “Risk Factors” section in the Company’s Shell Company Report on Form 20-F filed with the U.S. Securities and Exchange Commission. These forward-looking statements are based on information available as of the date of this news release, and expectations, forecasts and assumptions as of that date, involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Critical Metals Corp.
Investor Relations: ir@criticalmetalscorp.com
Media: pr@criticalmetalscorp.com
FAQ
What is the size and price of CRML's February 2025 private placement?
What are the terms of the warrants issued in CRML's 2025 PIPE financing?
How will CRML use the proceeds from the $22.5M private placement?
When is CRML's 2025 private placement expected to close?
