Critical Metals Corp (NASDAQ:CRML) has signed a letter of intent to acquire European Lithium (ASX:EUR) for a total consideration of US$835 million ($1.16 billion).
Under the proposed transaction, European Lithium shareholders will receive 0.035 shares of Critical Metals for each European Lithium share held, subject to signing a definitive agreement.
The transaction is expected to be implemented by way of two independent schemes of arrangement.
Completion of the deal is conditional upon numerous items, including negotiating and entering into a binding scheme implementation deed, obtaining shareholder approval, and European Lithium having a net cash and liquid assets balance of no less than $330 million. As of 31 March 2026, European Lithium had $306 million cash at hand.
Critical Metals says the deal is expected to be completed in H2 2026. If a definitive agreement is reached, a scheme meeting for European Lithium shareholders will be held in Q3 2026, to approve the transaction.
Cantor Fitzgerald & Co has been engaged as Critical Metals’ financial advisor, while Cleary Gottlieb Steen & Hamilton will act as US legal advisor and Nova Legal as its Australian legal advisor. Poynton Stavrianou will act as European Lithium’s financial advisor, while Steinepreis Paganin will act as legal advisor.
Critical Metals says the deal is a logical combination that has a “compelling strategic rationale” and is expected to create value.
The company says upon completing the deal, it will become the owner of the Tanbreez Rare Earth Project in Greenland.
Recently, the Greenland Government approved the transfer of the remaining 50.5% interest in Tabreez to Critical Metals, as previously reported.
As a result, the company now owns 92.5% of the project, solidifying its position as the controlling stakeholder in one of the world’s largest rare earth deposits.
The Tanbreez Project is an advanced, permitted asset that will supply a diverse portfolio of high-demand rare earths once operational. The project has an estimate of 4.7 billion tonnes of rock containing total rare earth oxide-bearing mineralisation.
Critical Metals Corp is a mining developer focused on critical minerals and producing strategic products essential to electrification and next-generation technologies for Europe and its Western world partners.
European Lithium is an explorer and developer focused primarily on the Wolfsberg Lithium Project in Austria.
Write to Aaliyah Rogan at Mining.com.au
Images: Critical Metals Corp
