Critical Metals Soars 76% After Securing $35 Million Investment
The private placement deal with an institutional investor is set to fund the development of the company's massive Tanbreez rare earth project in Greenland.
Shares of Critical Metals Corp (NASDAQ: CRML) skyrocketed on Monday, closing with a gain of over 75% after the company announced a significant capital infusion from a new institutional investor.
The surge was triggered by the news of a , signaling strong market confidence in the mining company's strategic assets. As part of the deal, Critical Metals will issue 5 million ordinary shares along with warrants to purchase an additional 10 million shares at a strike price of $7.00 per share.
The capital is earmarked for a crucial project: the development of the company's Tanbreez rare earth deposit in Southern Greenland. This deposit is one of the largest known rare earth assets in the world, holding a staggering 4.7 billion metric tons. The financing is a critical step toward commercializing a resource vital for modern technology and defense applications.
In a statement, CEO Tony Sage emphasized the deal's importance, noting that the financing "validates the opportunities for Tanbreez and addresses the growing demand for heavy rare earths in Western countries." The investment is seen as a move to build a secure, Western-focused supply chain for materials essential for electric vehicles, wind turbines, and advanced electronics.
The market's reaction was immediate and powerful. , trading on volume more than double its daily average. The stock price blew past its 50-day moving average of $5.77, a technical indicator that suggests strong bullish sentiment and a potential breakout. This move was further supported by , reflecting the positive price action and investor enthusiasm following the announcement.