Critical Metals (NASDAQ:CRML) has set the final share exchange ratio for its proposed acquisition of European Lithium (ASX:EUR), ahead of securityholder meetings scheduled for 22 October.
Under the proposed scheme, European Lithium shareholders will receive 0.045 new Critical Metals shares for each European Lithium share held at the record date.
The ratio is the maximum permitted under the deal’s floating exchange structure after Critical Metals’ 20-day volume-weighted average price fell at or below the US$8 ($11.4) floor price.
Critical Metals and European Lithium amended the transaction in August, replacing an earlier fixed ratio of 0.035 shares with a floating range of 0.025–0.045 shares, depending on Critical Metals’ Nasdaq trading price.
Critical Metals is proposing to acquire 100% of European Lithium’s issued shares and listed options through court-approved schemes of arrangement.
European Lithium shareholders and optionholders are due to vote on the transaction in West Leederville, Western Australia, on 22 October.
If approved, the deal will also require final approval from the Supreme Court of WA and satisfaction or waiver of remaining conditions precedent.
Critical Metals owns the Tanbreez rare earths project in Greenland and the Wolfsberg Lithium Project in Austria, while European Lithium is an Australia-listed critical minerals company and Critical Metals’ largest shareholder.
Write to France Pinzon at Mining.com.au
Main image: European Lithium
