European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has emerged from the December 2025 quarter with a sharply strengthened balance sheet, following the partial monetisation of its holding in Critical Metals Corp (CRML) and continued progress across its lithium and rare earths portfolio.
During the quarter, European Lithium sold 9.88 million CRML shares, raising gross proceeds of US$121 million (A$184.6 million). A further post-quarter sale of 5 million shares delivered an additional ~A$118 million, lifting the company’s cash balance to about A$314 million as of late January.
Despite the sell-down, European Lithium retains a substantial strategic exposure to CRML, holding 48 million shares. Based on CRML’s January 29 closing price of US$14.01, that stake is valued at roughly US$672 million (A$964 million).
Tanbreez drilling underpins large-scale rare earths potential
Operationally, the quarter was highlighted by strong drilling momentum at the Tanbreez rare earths project in Greenland, CRML’s flagship asset.
Project Dilling, historical 2007- 2014 and current 2024 and 2025 Summary Plan (WGS84 zone 23N)
Final 2024 diamond drilling results confirmed consistent high-grade rare earth mineralisation, with total rare earth oxide (TREO) grades ranging from 0.39% to 0.54% and heavy rare earth oxides accounting for approximately 25–27% of the total. Gallium, hafnium, yttrium and zirconium were also consistently present, reinforcing Tanbreez’s multi-commodity potential.
The 2025 drilling program built further confidence in scale and continuity, with 3,430 metres completed across 20 diamond drill holes. Reported results to date show TREO+Y grades between ~0.35% and 0.77%, again with a high proportion of heavy rare earth elements.
CRML has also commenced construction of a multi-use storage and pilot plant facility at Tanbreez and placed orders for an integrated rare earth assay laboratory, supporting the transition towards development and downstream processing.
Project Dilling historical 2007- 2014 and 2024 and 2025 Summary Plan (WGS84 zone 23N)
European lithium portfolio advances in Austria and Ireland
At European Lithium’s wholly owned Austrian lithium projects, detailed mapping at the Bretstein-Lachtal area has identified spodumene-bearing pegmatites, with drill planning under way at Quarry Ebner. Additional mapping and stream sampling is planned across multiple target areas in the Styria mining district.
Austrian Lithium Projects location
In Ireland, field crews mobilised during the quarter to commence an extensive 2025–26 exploration program at the Leinster lithium project. More than 200 rock chip, channel and stream samples have been collected to date, with first assay results expected in the coming quarter.
Sub outcrop of spodumene bearing pegmatite that was rock chip sampled in November 2025, on tenement PLC1597.
Wolfsberg permitting and Saudi JV progress
At the Wolfsberg lithium project in Austria, the federal administrative court has referred an earlier environmental decree back for reassessment following appeals by NGOs and municipalities. European Lithium is reviewing the decision and considering further legal options.
The project remains supported by a binding long-term offtake agreement with BMW and ongoing infrastructure planning, including energy corridor design works.
Meanwhile, CRML continues to advance the Saudi Arabia lithium hydroxide joint venture with Obeikan Investment Group, with engineering firm Hatch appointed to design a refinery capable of producing up to 20,000 tonnes per annum of battery-grade lithium hydroxide.
Strong liquidity provides flexibility
Following the deconsolidation of CRML in October, European Lithium ended the quarter with significant liquidity, minimal balance sheet pressure and flexibility to progress its lithium and rare earths strategy across multiple jurisdictions.
The company said it will incorporate the 2024–25 Tanbreez drilling results into planning for the 2026 Greenland field season as it continues to assess pathways to resource growth and development.
2024 Diamond Drill Hole DDH E-24