Critical Metals Corp. (NASDAQ: CRML) shares began Thursday, as the New York-based company, a leading critical minerals mining company, today announced that it has entered into a securities purchase agreement with a fundamental institutional investor to raise $50,000,000 of gross proceeds via a private investment in public equity transaction. The Company intends to use the net proceeds from the offering to help fund the development of its 4.7 billion metric ton rare earth deposit, Tanbreez, in Greenland.
"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," said CEO Tony Sage. "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."
Under the terms of the securities purchase agreement, the Company is issuing, for an aggregate purchase price of $50 million, an aggregate of 1.47 million ordinary shares and pre-funded warrants to purchase an aggregate of approximately 1.56 million shares. The shares and warrants are subject to resale registration rights.
CRML shares shed 57 cents, or 2.5%, to $22.15.
