European Lithium Ltd (ASX:EUR, OTCQB:EULIF) welcomes news that US-listed entity Critical Metals Corp (Nasdaq:CRML) has picked up an initial 5.55% equity interest in the Tanbreez Greenland Rare Earth Mine from Rimbal Pty Ltd.
Controlling interest in sights
The transaction is part of a broader plan to acquire a 92.5% controlling interest in the rare earth play and is another milestone in the company’s strategic acquisition process.
Following a cash payment of US$5 million to Rimbal Pty Ltd, which is controlled by geologist Gregory Barnes, Critical Metals Corp now holds the equity interest in the Tanbreez Project.
Meanwhile, European Lithium will retain its 7.5% ownership in the Tanbreez Project.
CEO and chair Tony Sage said: “The completion of this investment is a key step for our plans to acquire Tanbreez, a foundational rare earth asset for the West.
“By acquiring Tanbreez, Critical Metals Corp will be strategically positioned to become a reliable and sustainable supplier of both light and heavy rare earth elements to meet the growing demand of these materials from the technology and defence industries in Western countries.
“With this development, the transaction is further de-risked.”
About European Lithium
European Lithium Limited is an exploration and development stage mining company with a primary focus on lithium projects in Austria, Ukraine, Ireland and Australia.
The company currently holds 67,788,383 (83.03%) ordinary shares in Critical Metals Corp.
Based on the closing share price of Critical Metals Corp being US$11.53 per share as of June 17, 2024, European Lithium’s investment in Critical Metals Corp. is valued at US$781.6 million (A$1.17 billion), subject to share price fluctuations.
About Critical Metals Corp
Critical Metals Corp is a leading mining development company focusing on critical metals and minerals essential for electrification and next-generation technologies.
Its flagship asset, the Wolfsberg Lithium Project in Carinthia, Austria, is the first fully permitted lithium mine in Europe, strategically located with access to established road and rail infrastructure.
The project is poised to become a significant producer of key lithium products to support the European market.
Additionally, Critical Metals Corp. holds a 20% interest in prospective Austrian mineral projects previously held by European Lithium.