European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has announced a major milestone in Greenland, with Critical Metals Corp (NASDAQ: CRML) amending its acquisition terms to secure a controlling stake in the Tanbreez Rare Earths Project.
Under the revised agreement, Critical Metals will increase its interest in Tanbreez Mining Greenland AS from 42% to 92.5% by issuing 14.5 million ordinary shares to Rimbal Pty Ltd, a company controlled by project founder Gregory Barnes.
The agreed issue price of US$8.00 per share represents a premium of about 23% to Critical Metals’ last closing price of US$6.49, implying a total transaction value of US$116 million. Importantly, the updated deal fixes the number of shares to be issued, providing greater clarity for investors.
Barnes has also waived a previous requirement for Critical Metals to invest US$10 million before qualifying for the expanded ownership. Completion remains subject to Greenland government approval, with closing targeted for October or November 2025.
European Lithium will retain its 7.5% minority interest in Tanbreez, alongside its significant 60% shareholding in Critical Metals. At current prices, that stake in CRML is valued at around US$408 million (A$629 million).
Leadership commentary
European Lithium executive chairman Tony Sage said the transaction sharpened the company’s development pathway.
“This significant milestone agreement with Mr Greg Barnes and Rimbal positions us to be laser-focused on bringing this world-class asset into production,” Sage said. “Greg is a significant shareholder of Critical Metals and is aligned with our long-term success. We look forward to continuing to leverage his deep technical expertise and decades of project knowledge as we advance our development strategy.”
Barnes described Tanbreez as “a game-changer for the rare earths supply chain in the West”, citing its large-scale resource and high-grade heavy rare earth content.
“After working closely with Tony Sage and the top-notch technical team at Critical Metals over the past several months, I am confident in their ability to execute the commercialisation roadmap and capitalise on the opportunities ahead,” he said.
A world-class deposit
Tanbreez, located near Qaqortoq in southern Greenland, is considered one of the world’s largest hard rock rare earth deposits. Host rock estimates point to about 4.7 billion tonnes of total rare earth oxide (TREO)-bearing kakortokite, with heavy rare earth oxides accounting for roughly 27% of TREO content.
Read more: European Lithium reports consistent rare earth grades from Tanbreez drilling
The project is distinguished by its extremely low uranium and thorium levels, improving its environmental and regulatory profile compared with other global rare earth operations. Work is under way to advance a measured and indicated mineral resource estimate, with feasibility and pre-development studies ongoing.
European Lithium said the updated deal strengthens Critical Metals’ ability to progress Tanbreez as a strategic Western supply hub for critical minerals, alongside its Wolfsberg lithium project in Austria.