European Lithium Ltd (ASX:EUR, OTCQB:EULIF) welcomes the news that Critical Metals Corp. (Nasdaq: CRML) will acquire a 92.5% controlling interest in the Tanbreez Greenland Rare Earth Deposit.
Landmark acquisition
In a landmark deal, Critical Metals Corp. will pick up the majority stake from Rimbal Pty Ltd. for US$211 million in CRML shares, valued at US$10.71 per share, along with US$5 million in cash.
European Lithium will retain a 7.5% direct interest in the Tanbreez Project, which it sees as a globally significant critical minerals asset.
The Tanbreez Project is poised to become a key supplier of rare earth elements (REEs) to North America and Europe, providing a sustainable and reliable source for next-generation technologies and the defence industry.
With more than 27% heavy rare earth elements (HREEs), the Tanbreez Project stands out in an industry dominated by light rare earth elements (LREEs).
Sovereignty and environmental benefits
This project, in Southern Greenland, is permitted with a mining licence granted by the Greenland Government in 2020.
The site benefits from year-round direct shipping access via deepwater fjords leading to the North Atlantic Ocean.
The mineralisation process at the Tanbreez Project is expected to produce minimal harmful by-products, making it an environmentally friendly asset.
What’s more, the Tanbreez Project provides an alternative supply source for Western nations, reducing dependence on China for critical rare earth minerals and bolstering national security.
Critical Metals Corp CEO and chair Tony Sage said: "Tanbreez is a game-changing rare earth asset for the West and is a key step towards positioning Critical Metals Corp. as the preeminent critical minerals supplier with a diversified, multi-asset portfolio that spans multiple geographies."
The Tanbreez Project features the Kakortokite ore body, covering an area of 8 by 5 kilometres and around 400 metres thick.
The asset is expected to benefit from regulatory support in Europe and North America, driven by the demand for next-generation technology in both commercial and government applications.
European Lithium holds 67,788,383 ordinary shares in Critical Metals, valuing its investment at around US$736.86 million (A$1.11 billion) as of June 10, 2024, based on CRML’s closing share price of US$10.87.
About the companies
European Lithium is an exploration and development stage mining company focused on lithium projects in Austria, Ukraine, Ireland and Australia.
Critical Metals, in which EUR has a controlling stake, is a leading mining development company, producing strategic products essential for electrification and next-generation technologies.
Its flagship asset, the Wolfsberg Lithium Project in Austria, is the first fully permitted mine in Europe, with robust infrastructure and strategic partnerships.