A U.S.-based mining company announced Monday it will purchase European Lithium in a transaction valued at approximately $835 million, securing complete control of a rare earth mining operation in Greenland.
Critical Metals revealed plans to buy all remaining shares of European Lithium, which will give the company total ownership of the Tanbreez rare earth project. The American miner currently controls 92.5% of the operation, while European Lithium holds the remaining 7.5% stake.
Following the announcement, Critical Metals stock surged over 6% during pre-market trading hours.
The agreement calls for European Lithium investors to receive 0.035 Critical Metals shares in exchange for each share they currently own.
Company officials anticipate finalizing the acquisition during the latter half of 2024.
