European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has sold a further 3.03 million shares in Critical Metals Corp (NASDAQ: CRML) via an off-market transaction to a single US institutional investor at US$16.50 per share, generating net proceeds of US$50 million (approximately A$76 million) for EUR.
The company says it has fielded a high volume of shareholder enquiries about the gap between its market capitalisation and the value of its stake in CRML. As at the Nasdaq close on October 16, 2025 (US$22.72), EUR’s 53,036,338 CRML shares were worth about US$1.2 billion (A$1.85 billion), or roughly A$1.23 per EUR share—well above EUR’s current market value despite recent gains in its share price. The company says it is aware of the discrepancy and is pursuing a range of strategic options to better reflect this intrinsic value. EUR adds it now holds more than $190 million in cash reserves.
“The capital raising undertaken by CRML demonstrates continued investor confidence in the US markets in CRML as they continue to advance the strategic portfolio of critical mineral assets,” European Lithium executive chairman Tony Sage said.
“We are receiving a lot of enquiries from EUR shareholders regarding the discrepancy between the EUR market capitalisation against its shareholding in CRML. EUR currently holds 53,036,338 shares in CRML and using the US$22.72 closing price on the Nasdaq on October 16, 2025, values the company’s holding at approximately US$1.2 billion (A$1.85 billion) which equates to A$1.23 per EUR share which is well above the current market capitalisation of EUR despite recent increases in the EUR share price. We are aware of this discrepancy and continue to execute a range of strategic options aimed at better reflecting this intrinsic value. The company now has over $190m in cash reserves.”
Supporting Tanbreez
Separately, CRML has completed a private placement of approximately US$50 million to support development of the Tanbreez Rare Earth Project in Greenland.
Under a securities purchase agreement, CRML is issuing a total of 1.47 million ordinary shares (the ‘PIPE Shares’) at US$16.50 per share and pre-funded warrants exercisable for approximately 1.56 million additional shares. The securities issued in the placement are subject to resale registration rights.
Earlier this month, EUR marked a major step toward consolidating control of the Tanbreez Rare Earths Project in Greenland after CRML reset its acquisition terms to secure a dominant position in the asset.
Under the revised agreement, Critical Metals will lift its stake in Tanbreez Mining Greenland A/S from 42% to 92.5% by issuing 14.5 million ordinary shares to Rimbal Pty Ltd, a company controlled by Tanbreez founder Gregory Barnes. The shares will be issued at US$8.00 apiece—about a 23% premium to Critical Metals’ last close of US$6.49—implying consideration of roughly US$116 million. Crucially, the number of shares is now fixed, removing a source of uncertainty for investors that often accompanies variable-scrip deals.
Barnes has also waived a previous requirement that Critical Metals invest US$10 million before qualifying for the expanded stake. Completion remains contingent on approval from the Greenland government, with closing targeted for October–November 2025.
Sage said the amended terms sharpen the company’s development pathway. “This significant milestone agreement with Mr Greg Barnes and Rimbal positions us to be laser-focused on bringing this world-class asset into production,” he said, adding that Barnes’ alignment as a major CRML shareholder would help sustain momentum. Barnes, for his part, described Tanbreez as “a game-changer for the rare earths supply chain in the West,” citing its scale and heavy rare earth endowment and expressing confidence in Critical Metals’ team to execute the commercialisation plan.