European Lithium (ASX:EUR) has completed the sale of 5 million ordinary shares in Critical Metals (NASDAQ:CRML), generating net proceeds of approximately $124 million and growing the company’s cash reserves to $322 million.
The transaction was facilitated by BMO Capital Markets, acting in a market maker capacity, following the affiliate provisions of Rule 144.
Executive Chairman Tony Sage says that “this transaction again proves our investment in the Tanbreez project has been a huge success and hopefully the EUR share price should finally reflect its true asset value”.
“The sale will also provide EUR with additional financial flexibility while maintaining a significant exposure to CRML. The proceeds will further strengthen our balance sheet and positions the company to continue advancing its core projects, look for new opportunities, or return capital to shareholders.”
European Lithium is focused on exploration and development for lithium assets in Austria, Ukraine, and Ireland. It has a direct 7.5% stake in the Tanbreez rare earth project in Greenland.
Write to Amy Rotman at Mining.com.au
Images: European Lithium
