Critical Metals to Acquire European Lithium for $835M, Securing 100% Greenland Rare Earth Stake
Critical Metals agreed to buy European Lithium for $835 million in a deal offering 0.035 share per share to gain full ownership of the Tanbreez rare earth deposit in Greenland. The acquisition unlocks $219 million in cash reserves and funds development efforts at Tanbreez.
1. Deal Structure
Critical Metals agreed to acquire all outstanding shares of European Lithium for $835 million in stock, exchanging 0.035 Critical Metals share for each European Lithium share. The transaction would give Critical Metals 100% ownership of the Tanbreez rare earth deposit in Greenland and remove a major 34% shareholder.
2. Financial Impact
European Lithium’s approximately $219 million in cash balances will transfer to Critical Metals, strengthening its balance sheet and funding development. The deal follows a recent stake increase in Tanbreez and drove a 25% rally in Critical Metals’ shares, giving it a market value near $1.9 billion.
3. Development Outlook
Full control of Tanbreez positions Critical Metals to accelerate project financing, permitting and construction in Greenland’s challenging Arctic environment. The deposit’s strategic rare earths align with geopolitical efforts to secure critical minerals, though high costs and strict regulations could extend development timelines.