European Lithium has deepened its capital base, listing nearly 6.7 million new fully paid ordinary shares on the ASX on 3 June 2026—one day after the stock touched a 52-week high. The shares were created through the exercise of existing options and other convertible securities, executed without a prospectus under Australian corporate law. The move lifts total issued shares to around 1.72 billion, keeping dilution tight given a market capitalisation of roughly A$832 million.
The capital management step comes as the company’s planned merger with Nasdaq-listed Critical Metals Corp nears the final stretch. At the heart of the deal is the Tanbreez rare earths project in southern Greenland, where Critical Metals—set to consolidate 100% ownership—reports tangible construction progress. Foundations for the Phase 1 pilot plant’s central infrastructure have been poured, and camp facilities are being expanded near the newly opened Qaqortoq International Airport to house a growing workforce. Additional drilling rigs have been assembled and are poised to refine the resource model and finalise mine planning. Tanbreez targets heavy rare earths such as terbium and dysprosium, key inputs for defence applications and the energy transition.
European Lithium currently holds a 7.5% stake in Tanbreez, which will be absorbed by Critical Metals upon completion of the scheme of arrangement. Under the deal, each European Lithium share will be exchanged for 0.035 Critical Metals shares. European Lithium also owns roughly 31% of Critical Metals’ outstanding stock and reported cash of approximately A$306 million as of 31 March 2026. One of the conditions for closing is that European Lithium maintains a net cash position of at least A$330 million—a target that the company will need to close the gap on.
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The Wolfsberg lithium project in Austria remains a complementary strategic pillar. Fully permitted with road and rail links, the mine has offtake agreements in place to supply Europe’s battery market. The project is expected to be transferred to Critical Metals as part of the merger.
The shares last traded at A$0.485 on 2 June, up about 2%, giving a market cap just above A$800 million. In euro terms, the stock sits at €0.28—roughly 10% below the all-time high set the previous day. Over twelve months the price has nearly tripled, and since June 2025 it has more than decupled. That rally comes with extreme volatility: the annualised 30-day reading exceeds 140%.
Shareholder approval for the merger is expected in the third quarter of 2026, with regulatory and court clearances to follow in the second half. Until then, drilling results and operational updates from Greenland will serve as the next valuation catalysts.
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