en.Wedoany.com Reported - Critical Metals announced plans to acquire European Lithium via an all-stock transaction, gaining full control of its Tanbreez rare earth project in Greenland and removing a major shareholder holding approximately 34% of the shares. The company’s stock surged on the news.

Under a letter of intent signed on April 22, Critical Metals will exchange 0.035 of its own ordinary shares for each share of European Lithium, valuing the deal at approximately $835 million. The company stated that the transaction constitutes a “reasonable” business combination, resulting in minimal dilution for shareholders while increasing public float, making it “more attractive to future strategic investors and potential acquirers.”

The Tanbreez project is located at Killavaat Alannguat in southern Greenland and is considered one of the largest undeveloped heavy rare earth resources outside of China. Critical Metals entered the project over a year ago and has completed a preliminary economic assessment, valuing the project at $3 billion based on a resource of 4.7 billion tons across two deposits.

Upon completion, Critical Metals will cancel shares held by European Lithium, worth approximately $540 million, and acquire the remaining 7.5% interest in the Tanbreez project, achieving 100% ownership. The Greenlandic government has previously approved the indirect transfer of the license to Critical Metals.

Currently, three-quarters of the Tanbreez project's future production is covered by offtake agreements, and it has secured $120 million in financing from the U.S. Export-Import Bank. The company plans to commence first ore production in the fourth quarter of 2028 or the first quarter of 2029.

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