European Lithium Ltd saw its shares skyrocket by more than 33% on Friday following the announcement of a major on-market share buy-back program aimed at enhancing shareholder value and strengthening investor confidence.
The company revealed plans to repurchase up to 135 million ordinary shares, representing around 10% of its issued capital. Based on the closing price as of September 30, the buy-back would amount to approximately A$12.6 million. The program is scheduled to begin no earlier than October 17 and conclude no later than March 31, 2026, depending on market conditions.
Undervalued Assets and Strategic Opportunity
Executive Chairperson Tony Sage stated that the board firmly believes European Lithium’s shares are trading below their intrinsic value.
“The board believes the current share price does not reflect the underlying value of our assets. With our holding in Critical Metals Corp currently valued at around A$678 million, this buy-back presents an outstanding opportunity to acquire shares at a significant discount and enhance value for existing shareholders,” Sage explained.
The buy-back will be managed by Evolution Capital and conducted within the “10/12 limit” permitted by Australia’s Corporations Act 2001, meaning no shareholder approval is required.
Strengthening Strategic Assets in Greenland
The buy-back news followed another major development—European Lithium and its US-listed affiliate Critical Metals Corp secured a deal to take majority control of the Tanbreez Rare Earths Project in southern Greenland, one of the world’s most promising sources of critical raw materials.
Critical Metals revised its agreement with project founder Gregory Barnes and Rimbal, increasing its ownership stake in Tanbreez from 42% to 92.5% through the issuance of 14.5 million Critical Metals shares. European Lithium will retain a 7.5% minority interest in the project. The deal remains subject to approval from the Greenland government, with completion expected by October or November.
Sage described the acquisition as a “transformative milestone” for the company’s long-term strategy:
“This agreement positions us to focus on bringing this world-class asset into production. Greg Barnes remains a key shareholder and partner, and his deep technical expertise will continue to guide our development efforts,” Sage said.
Tanbreez: A Game-Changer for Western Supply Chains
Project founder Gregory Barnes emphasized the strategic importance of Tanbreez for the global rare earths supply chain, particularly for Western economies seeking to reduce reliance on China.
“The Tanbreez project is a game-changer, hosting around 4.7 billion tonnes of rock rich in high-grade heavy rare earth elements and gallium. This resource has the potential to redefine Western access to critical minerals,” Barnes noted.
Market Reaction
Investors reacted positively to the twin announcements, with European Lithium shares rising to A$0.12, up A$0.03, or 33.3% on Friday. The sharp uptick reflects growing market confidence in the company’s strategic direction—combining financial discipline with expansion into high-value critical minerals essential for the global energy transition and advanced technologies.
