European Lithium ended the June quarter with $296.3 million in cash as the company advanced a proposed combination with Nasdaq-listed Critical Metals Corp, while development activity accelerated at the Tanbreez Rare Earth Project in southern Greenland.
Under a binding Scheme Implementation Deed, Critical Metals plans to acquire 100 per cent of European Lithium’s issued share capital through a court-approved scheme, with European Lithium shareholders receiving Critical Metals shares. The transaction would place European Lithium’s assets within a larger US-listed critical-minerals platform as Tanbreez moves towards drilling, pilot processing and further engineering work.
Critical Metals raises Tanbreez ownership
During the quarter, the Government of Greenland approved the transfer of the remaining 50.5 per cent interest in Tanbreez to Critical Metals, lifting its ownership to 92.5 per cent. The company has committed US$30 million to a Project Acceleration Plan, covering drilling, bulk sampling, pilot-plant work and the acquisition of Greenlandic civil engineering, construction and mining contractor 60 Degree North A/S. The higher ownership gives Critical Metals greater control over development planning, contractors, technical programmes and financing as it advances the project.
10,000-metre drilling programme begins
Critical Metals started a planned 10,000-metre diamond drilling campaign targeting extensions of known mineralisation and infill areas, while collecting geological, geotechnical and metallurgical information.
The results are expected to contribute to future Mineral Resource updates, mine planning and engineering studies. Metallurgical samples will also be used to assess recovery performance and processing characteristics across the deposit. The company has begun construction of a multi-purpose storage facility, laboratory and pilot-plant complex in Qaqortoq, southern Greenland. The facility will support bulk-sample processing and technical testing, including assessment of material handling, grinding, reagent consumption, separation performance, water use and product consistency.
Local contractor and processing capacity
The acquisition of 60 Degree North A/S is intended to strengthen Critical Metals’ access to Greenland-based construction and mining capabilities, including personnel, equipment and local operating expertise. Pilot-scale processing will also provide representative material for potential customer qualification, with product composition, impurity levels and consistency requiring detailed assessment before commercial supply arrangements can be established.
The project’s eventual capital requirements will depend on the selected mining method, production scale, processing route, infrastructure and downstream integration. For European Lithium, the June quarter therefore combined its proposed 100 per cent takeover by Critical Metals with continued advancement of Tanbreez, including 92.5 per cent ownership, a US$30 million acceleration programme, 10,000 metres of drilling and construction of pilot-processing infrastructure in Qaqortoq.
