Critical Metals Corp Secures $35 Million Through PIPE Agreement

Critical Metals Corp Secures Significant Funding

Critical Metals Corp. (Nasdaq: CRML) has successfully signed a securities purchase agreement with a prominent institutional investor, securing an impressive $35,000,000 through a private investment in public equity (PIPE). This funding is strategically aimed at supporting the development of the company’s extensive Tanbreez rare earth deposit, which boasts a stunning 4.7 billion metric tons and is located in Greenland.

Funding Overview

The company’s CEO and Executive Chairman, Tony Sage, emphasized the importance of this financing, stating, "This financing from a fundamental institutional investor further validates the opportunities ahead for Tanbreez and Critical Metals Corp, highlighting the growing demand for heavy rare earths in the Western markets." Such investments are crucial as Critical Metals Corp. continues to navigate its commercialization roadmap for Tanbreez, driving it closer to production.

Details of the PIPE Transaction

The agreement entails the issuance of 5 million ordinary shares along with warrants to purchase an additional 10 million ordinary shares at a strike price of $7.00 per share. These warrants carry a 6-year expiration period from the issuance date. Notably, both the Issued Shares and the PIPE Warrant Shares will enjoy customary resale registration rights. However, the completion of this PIPE transaction is contingent on standard closing conditions associated with such financing agreements.

Advisory Team and Legal Counsel

Critical Metals Corp. enlisted the expertise of Jett Capital Advisors, LLC, and Cohen & Company Capital Markets as Placement Agents for this vital private placement. Clear Street also played a significant role as the Financial Advisor. To ensure proper legal handling of the transaction, White & Case LLP was appointed as legal counsel for the firm.

Regulatory Compliance

It's essential to note that the securities involved in this PIPE transaction are not registered under the Securities Act of 1933 or related state laws. Consequently, they cannot be offered or sold within the United States unless registered with the Securities and Exchange Commission or unless an applicable exemption is obtained.

About Critical Metals Corp.

Critical Metals Corp. (Nasdaq: CRML) is a pioneering company in the mining sector, emphasizing the extraction and development of critical metals and minerals essential for powering the electrification and next-generation technologies across the United States, Europe, and their allied partners. The flagship Tanbreez project is recognized as one of the world’s largest rare earth deposits, strategically positioned in Southern Greenland. This location provides vital transportation access due to its proximity to year-round shipping routes via deep-water fjords leading to the North Atlantic Ocean.

Additional Key Projects

Another noteworthy asset under the company's portfolio is the Wolfsberg Lithium Project located in Carinthia, Austria. This project holds the distinction of being the first fully permitted lithium mine in Europe. The strategic location, combined with established road and rail networks, positions Wolfsberg to be a leading producer of key lithium products aimed at supporting the burgeoning European market. With solid offtake agreements and strong downstream partnerships, it stands as a valuable component of Critical Metals Corp.'s expanding critical metals portfolio.

Future Outlook

With an impressive asset portfolio, Critical Metals Corp. is setting the stage to become a reliable and sustainable supplier of critical minerals. These minerals are increasingly essential for applications in defense, clean energy, and advanced technologies in the Western world. The successful execution of the recent PIPE funding will undoubtedly provide Critical Metals Corp. with the financial backing necessary to realize its ambitious goals.

Frequently Asked Questions

What is the significance of the $35 million PIPE agreement?

The PIPE agreement enables Critical Metals Corp. to secure substantial funding to further develop its Tanbreez rare earth project, which is crucial for its growth.

How does the funding impact Tanbreez?

The funding will facilitate advancements in the Tanbreez project, positioning it closer to production and addressing the increasing demand for heavy rare earths.

Who are the advisors for this transaction?

Jett Capital Advisors, LLC, and Cohen & Company Capital Markets acted as Placement Agents, while Clear Street served as the Financial Advisor.

What are the terms of the securities purchase agreement?

The terms include the issuance of 5 million ordinary shares and 10 million warrants at a strike price of $7.00 per share, expiring in 6 years.

What role does regulatory compliance play in this PIPE?

Regulatory compliance is critical, as the securities are not registered under the Securities Act and cannot be sold in the U.S. without proper registration or exemption.

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