Critical Metals (Nasdaq: CRML) has completed its acquisition of European Lithium, strengthening its rare earths control in Greenland.
The all-stock takeover saw more than 90 million new Critical Metals shares issued. European Lithium shareholders are entitled to 0.045 of a new Critical Metals share plus 0.035 of a share per option held.
With the transaction complete, European Lithium is now a wholly owned subsidiary of the Nasdaq-listed company. The new shares are expected to begin trading on Nov. 6 and cannot be traded on the Australian Securities Exchange (ASX). Critical Metals reported a cash balance of about $264.5 million (C$370 million) immediately following the transaction.
The company's stocks fell 15.38% in New York on Thursday morning following the issuing of the new shares.
Tanbreez deposit
The acquisition gives Critical Metals full ownership of the Tanbreez rare earths project in southern Greenland, with European Lithium previously holding a 7.5% stake in the project.
A 2025 preliminary economic assessment (PEA) outlined an initial production of about 85,000 tonnes of rare earth concentrate annually, with potential to expand to more than 400,000 tonnes. It also showed an after-tax net present value (NPV) of $2.1 billion at a 15% discount rate.
The announcement follows the recent government approval of the project’s mine plan, accelerating Tanbreez toward construction.