European Lithium sells CRML shares for ~A$45m boost, adds to robust cash position

Core Viewpoint - European Lithium Ltd has significantly strengthened its cash position by adding A$45 million through the sale of shares in Critical Metals Corp, raising its cash reserves to approximately A$356 million while retaining a substantial stake in CRML [1][2]. Financial Position - The company sold 2.5 million ordinary shares of CRML, which is expected to increase its cash reserves to around A$356 million [2]. - Following the sale, European Lithium holds 45,536,338 ordinary shares in CRML, valued at an estimated US$689.4 million (approximately A$985 million) based on CRML's closing price of US$15.14 [3]. Strategic Actions - The partial sell-down of CRML shares is seen as a strategic move to bolster the company's financial position, with the executive chairman stating it reinforces the already robust balance sheet [4]. - The company does not plan to sell any additional CRML shares in the next four months, maintaining its strategic influence in potential corporate transactions [4]. Previous Transactions - This transaction follows a previous sale of 5 million CRML shares for about A$124 million, which has materially boosted the company's liquidity [4]. Broader Portfolio and Outlook - Beyond CRML, European Lithium is advancing a diversified portfolio of critical minerals assets, focusing on lithium and titanium exploration in Europe, including projects in Austria, Ukraine, and Ireland [5]. - The company also holds interests in Australian base metal projects and a 7.5% stake in the Tanbreez rare earth project in Greenland [5]. - In January, European Lithium announced a proposed all-scrip acquisition of US-based titanium producer Velta, aimed at broadening its exposure to strategic industrial minerals beyond lithium [6]. Growth Strategy - With a strengthened cash position and retained strategic holding in CRML, the company aims to balance liquidity with long-term upside from its CRML-linked rare earth and lithium exposure while progressing growth through diversified critical minerals opportunities [7].