Drilling has resumed at one of the world’s largest undeveloped rare earth deposits, and European Lithium is betting the results will turbocharge its planned merger with Critical Metals Corp. The company confirmed Tuesday that a 10,000-metre borehole program is now underway at the Tanbreez project in southern Greenland, with the first ore targeted for extraction by the end of 2028.
The project’s scale is staggering. The mineralised zone is estimated to contain 4.7 billion tonnes of rock, positioning Tanbreez as a strategic prize for Western supply chains desperate to break China’s grip on heavy rare earths. European Lithium holds a direct 7.5% stake in Tanbreez and a 37.5% interest in Critical Metals, meaning every metre drilled in Greenland feeds directly into its own valuation.
Political tailwinds are strengthening the case. At the G7 summit in Evian, leaders called for a diversification of critical mineral supply chains, aiming to ensure no single supplier controls more than 60% of the market by 2030. Tanbreez, one of the largest rare earth deposits outside China, fits squarely into that agenda.
Should investors sell immediately? Or is it worth buying European Lithium?
The corporate mechanics are moving in lockstep. European Lithium is folding its Austrian and Greenland assets under the Critical Metals umbrella. The exchange ratio has been set at 0.035 Critical Metals shares for each European Lithium share. A shareholder vote is scheduled for late August, with the final closing expected in early September. Regulatory approvals, including Greenlandic government consent for additional stake transfers granted in April, are already secured.
At the bourse, the stock has already priced in much of the optimism. Shares closed the week at €0.25, delivering a year-to-date gain of roughly 173% and a sevenfold increase over twelve months. The 50-day moving average sits at €0.23, providing a technical floor. The Relative Strength Index hovers around 50, suggesting the rally has room to breathe before becoming overextended.
Volatility remains a feature of this sector, but the near-term catalysts are unambiguous. The drilling results, due in the third quarter, will feed directly into feasibility studies. Combined with the final merger documents, the next few weeks will either confirm the foundation for a fresh leg higher or test the patience of investors who have already ridden a spectacular run.
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