European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has received net proceeds of US$21 million (approximately A$31.75 million) after Critical Metals Corp. (Nasdaq: CRML) sold 3 million CRML shares off-market to a single United States institutional investor at US$7 per share, a 10% premium to the 14-day volume weighted average price (VWAP).
Executive chairman Tony Sage said: “This transaction again highlights the value of the company's holding in CRML. The remaining 60 million shares held in CRML, using the $US11.50 closing price on the Nasdaq yesterday, values the Company’s holding at approximately $US689M ($A1,061m), which is well above the current market capitalisation of EUR. The Company’s holding in CRML equates to A$0.73c per EUR share.”
On market buyback
The increased bank balance comes just a day after European Lithium also unveiled an on-market buyback of up to 135 million ordinary shares, about 10% of issued capital.
Based on the September 30 closing price, the program would cost about A$12.6 million.
“The board believes the company’s current share price does not reflect the underlying value of the company’s assets,” Sage said. “The current market value of the company’s holding in Critical Metals Corp. is approximately $678 million at yesterday’s closing price,” he added. “In the board’s view, the buyback therefore represents a fantastic opportunity to buy shares back at a significant discount and add value to our remaining shares on issue.”
The buyback may start no earlier than October 17, 2025 and end by March 31, 2026, within the “10/12 limit” under the Corporations Act 2001.
Evolution Capital Pty Ltd will manage execution.