Critical Metals to Buy European Lithium for 835 Million
Critical Metals announced a deal on Monday to purchase all outstanding shares of European Lithium. The transaction gives the miner full control of the Tanbreez project.
CRITICAL METALS PLC has announced a definitive agreement to acquire all outstanding shares of EUROPEAN LITHIUM LTD in a transaction valued at approximately $835 million. This strategic move is designed to grant the United States-based mining firm full ownership of the Tanbreez rare earth project located in Greenland.
Prior to this announcement, CRITICAL METALS PLC held a 92.5% stake in the asset, while EUROPEAN LITHIUM LTD controlled the remaining 7.5%. Following the news of the consolidation, shares of the U.S. miner saw a significant boost, climbing more than 6% during premarket trading sessions.
Under the specific terms of the deal, shareholders of the acquired company will receive 0.035 shares of the parent company for every single share they currently hold. This all-stock transaction aims to streamline the management and development of the Greenland-based project as global demand for rare earth elements continues to rise.
The merger is currently on track for completion during the second half of this year, pending customary regulatory approvals and shareholder consent.
