Critical Metals to Acquire European Lithium for $835 Million
Critical Metals Corp. plans to acquire European Lithium Ltd. for approximately $835 million, enhancing its ownership of the Tanbreez rare earth project in Greenland. This acquisition underscores a strategic move towards securing lithium and rare earth elements amid global supply chain diversification efforts.
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Critical Metals Corp. has signed a letter of intent to purchase all outstanding shares of European Lithium Ltd. for about $835 million. This deal will provide Critical Metals full ownership of the Tanbreez rare earth project in Greenland, where it currently holds a 92.5% stake.
European Lithium retains a 7.5% share in the project, which is crucial for supplying elements like terbium and dysprosium. The transaction is contingent on due diligence and shareholder approvals, expected to finalize in the second half of this year.
The growing demand for rare earths, particularly from the U.S. and allies seeking to reduce reliance on China, highlights the significance of this acquisition. This move could impact global supply dynamics in critical minerals.
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