CRML Stock Jumps Following $50 Million PIPE Deal To Develop Tanbreez Rare Earth Project

Shares of Critical Metals (CRML) popped more than 16% in pre-market trade on Thursday after the company announced $50 million in private investment via public equity. 

The jump in the stock price follows a 24% drop in the previous session. It was among the top trending tickers on Stocktwits on Thursday morning at the time of writing. Retail sentiment around CRML’s stock on the platform surged higher within ‘extremely bullish’ territory, accompanied by ‘high’ levels of chatter over the past day.

Platform data shows the number of retail traders following the stock increased by more than 2% and message volumes rose more than 9% in the last 24 hours, as of Thursday morning. Over the last 30 days, retail chatter has increased by over 1,500% and the number of watchers has risen over 150%. 

According to the company, the PIPE transaction was completed with a fundamental institutional investor, raising gross proceeds of $50 million through the issuance of 1.47 million ordinary shares and pre-funded warrants for approximately 1.56 million additional shares. 

“The proceeds will support our development efforts at Tanbreez, which is expected to help address the growing demand for heavy rare earths in the West,” said CEO and Chairman of Critical Metals, Tony Sage, referring to the company’s 4.7 billion metric ton Tanbreez rare earth deposit in Greenland. 

The company expects the Tanbreez Project to possess greater than 27% heavy rare earth elements (HREE), which carry a higher value than light rare earth elements. “In an industry where competitors primarily target light rare earth elements (LREE), Tanbreez is believed to be unique not only due to its significant size, but also because of its HREE asset mix,” Critical Metals said at the time of acquisition. 

Read also: Bitfarms Slides On $300 Million Offering After Rallying To Near 4-Year High, Retail Buzz Stays Elevated

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