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European Lithium (ASX:EUR,OTCQB:EULIF) investors have voted overwhelmingly to fold the company into Critical Metals (NASDAQ:CRML), over 6 months after the acquisition's initial announcement.
Shareholders backed the share scheme at meetings held on October 22, with 99.96 percent of votes cast and 97.22 percent of shareholders present and voting in favor.
Option holders unanimously approved a separate scheme covering the company’s listed options, and shareholders also passed related party resolutions.
Critical Metals said the votes satisfy the securityholder approval conditions for both schemes, under which it would acquire all of European Lithium’s shares and listed options in exchange for newly issued Critical Metals shares.
The schemes still required approval from the Supreme Court of Western Australia at a second hearing set for October 26, along with other conditions in the scheme booklet, the company said on October 22.
Its timetable has the schemes taking effect on October 27, the last day of ASX trading for European Lithium shares and options. Holders on the register on October 29 are due to receive their new shares on November 5, with Nasdaq trading expected to start the next day, when European Lithium leaves the ASX Official List. The company described all dates as indicative.
Critical Metals announced the US$835 million all-stock deal in April. The acquisition would give it full control of the Tanbreez rare earths project in southern Greenland, where it holds a 92.5 percent working interest and European Lithium holds the remaining 7.5 percent.
The deal also unwinds a cross-holding. At the time of the April announcement, European Lithium owned 45,536,338 Critical Metals shares, about 34 percent of the company, making it the largest single shareholder.
Critical Metals plans to cancel those shares on completion, reducing dilution from the new shares it issues.
Greenland’s government signed off on the Tanbreez mining and closure plans on September 29. The plans run through September 8, 2050, under the project’s 2020 exploitation license.
The approvals name 19 elements Critical Metals may extract once its remaining permits are in place. Those include the heavy rare earths terbium, dysprosium and yttrium and the magnet metals neodymium and praseodymium.
“Approval of the Mining and Closure Plans is a defining milestone for Tanbreez and for Critical Metals Corp,” Chairman and CEO Tony Sage said earlier this month.
The company stated it still needs activity-specific operating permits under sections 120 and 121 of the Greenland Mineral Activities Act before it can begin construction.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.