European Lithium Ltd (ASX:EUR, OTCQB:EULIF) said Critical Metals Corp. (CRML) (Nasdaq: CRML) has, in an off-market transaction, sold a further 3.85 million CRML shares to a single United States institutional investor at US$13 per share — a 12% discount to Friday’s closing price of US$14.98 — delivering net proceeds of US$50 million (approximately A$76 million) to European Lithium.
“The recent price increase and the large trading volumes on the Nasdaq shows the demand for CRML shares is huge. The remaining 56 million shares held in CRML, using the $US14.98 closing price on the Nasdaq on Friday, values the Company’s holding at approximately $US854 million ($A1.294B), which is well above the current market capitalisation of EUR. The Company’s holding in CRML equates to A$0.89c per EUR share. EUR also holds a direct 7.5% interest in the Tanbreez project and given the current market valuation of CRML ($A2.3BN), this equity interest is very strategic,” European Lithium executive chairman Tony Sage said.
EUR nets US$21M from CRML sale, unveils buyback of up to 135 million shares
EUR continues to build its bank, having last week received net proceeds of US$21 million (approximately A$31.75 million) after CRML sold three million CRML shares off-market to the abovementioned investor at US$7 per share, a 10% premium to the 14-day volume weighted average price (VWAP).
The cash boost follows the company’s move to launch an on-market share 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.
Sage said, “The board believes the company’s current share price does not reflect the underlying value of the company’s assets,” adding: “The current market value of the company’s holding in Critical Metals Corp. is approximately $678 million at yesterday’s closing price,” and “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 will end by March 31, 2026, operating within the “10/12 limit” under the Corporations Act 2001.
.