European Lithium (ASX:EUR) has sold 5 million ordinary shares in Critical Metals (NASDAQ:CRML), generating net proceeds of approximately $124 million.
The transaction, facilitated by BMO Capital Markets acting as a market maker under Rule 144, increases European Lithium’s cash reserves to $322 million.
Following the sale, the company retains 48,036,338 CRML shares, valued at around US$825 million based on CRML's closing price of US$17.17 per share on Jan. 20.
Tony Sage, Executive Chairman of European Lithium, said the sale underscores the success of the company's investment in the Tanbreez Project and provides additional financial flexibility.
He added that the proceeds will strengthen the balance sheet and support the advancement of core projects, exploration of new opportunities, and potential returns to shareholders.
European Lithium is an exploration and development-stage mining company with lithium assets in Austria, Ukraine, and Ireland.
At the time of reporting, European Lithium's share price was $0.29.