①Nasdaq-listed mining company Critical Metals plans to acquire Australian lithium miner European Lithium for approximately $835 million to gain full control of the Tanbreez rare earth project in Greenland; ②The Tanbreez project is regarded as an important alternative source of heavy rare earths, with its significance growing amid intensifying international competition.
Cailian Press reported on April 27 (edited by Niu Zhanlin) that a mining company listed on Nasdaq $Critical Metals (CRML.US)$ has signed a letter of intent to acquire all outstanding shares of Australian lithium miner European Lithium for approximately $835 million. This move will give it full ownership of the Greenland Tanbreez rare earth project.
Following the announcement on Monday, shares of Critical Metals surged more than 12% in early trading but have since pared gains to 8%. Other related stocks also rose in tandem, with $MP Materials (MP.US)$ climbing 6%, $USA Rare Earth (USAR.US)$ rose more than 6%, $Energy Fuels (UUUU.US)$ rose nearly 4%.
The Tanbreez project is considered an important alternative source of heavy rare earths, which are widely used in electric vehicles, medical equipment, oil refining, wind turbines, and defense applications. Amid increasingly fierce international competition, the project’s importance continues to grow.
Currently, Critical Metals holds a 92.5% stake in one of the world’s largest known rare earth deposits, while mining and development company European Lithium owns the remaining 7.5% interest in the project.
Critical Metals stated that achieving full control of Tanbreez will help streamline decision-making processes and financing strategies, thereby advancing the project toward a development decision phase.
At the end of last year, reports indicated that the Trump administration had discussed taking a stake in Critical Metals, which would give the U.S. government a direct interest in the Tanbreez project.
Critical Metals began trading publicly in 2024. The company was spun off from European Lithium and formed through the merger of its flagship Wolfsberg project in Austria with a special purpose acquisition company (SPAC) named Sizzle.
Under the latest transaction terms, the deal is expected to close in the second half of this year, with European Lithium shareholders receiving 0.035 shares of Critical Metals for each share held.
Based on this exchange ratio and Critical Metals’ closing price on April 22, 2026, the total consideration payable to European Lithium equity holders amounts to approximately $835 million.
The two companies currently have overlapping senior management: Tony Sage, CEO of Critical Metals, also serves as the Executive Chairman of European Lithium, while Dietrich Wanke, head of the Australian-listed company, serves as President of Critical Metals' European operations.
It is reported that the completion of the transaction is still subject to several conditions, including approval by European Lithium shareholders, regulatory clearance, and European Lithium maintaining a net cash and liquid assets balance of no less than 330 million Australian dollars.
Editor/Jayden