A curious dynamic is playing out at European Lithium. The company has been quietly adding to its position in Australian explorer CuFe Limited, yet its voting influence has actually shrunk. European Lithium now holds approximately 342 million CuFe ordinary shares, up from the previously reported 308 million. But CuFe’s own aggressive share issuance — including some 307 million new shares on 22 May — has pushed European Lithium’s voting rights from 17.85% down to 16.73%. The dilution is entirely structural, not
This development, while noteworthy, is largely a sideshow to the main event. European Lithium signed a binding Scheme Implementation Deed with Nasdaq-listed Critical Metals Corp on 18 May, setting the stage for a full share-swap takeover that values each European Lithium share at A$0.58 — a 137% premium over the last undisturbed closing price of A$0.245 on 22 April. Under the terms, European Lithium shareholders will receive 0.035 Critical Metals shares for every share they hold, and together they will own roughly 41% of the combined group.
Should investors sell immediately? Or is it worth buying European Lithium?
The strategic prize is the Tanbreez project in Greenland, a heavy rare earths deposit that forms the linchpin of the deal. Critical Metals already controls 92.5% of the project; European Lithium contributes the remaining 7.5% direct equity stake. Post-merger, Tanbreez will sit entirely under one roof, with development plans fuelled by a substantial treasury. European Lithium exited March 2026 with a cash position of approximately A$306 million (US$219 million) and a portfolio of marketable securities valued at around US$18 million.
Closing is targeted for the second half of 2026, pending regulatory, court and shareholder approvals, with the scheme meeting expected in the third quarter. Meanwhile, the CuFe dilution underscores the quiet reshuffling of European Lithium’s portfolio as it directs its focus — and firepower — toward the Greenland asset. For a company on the brink of absorption into a larger mining group, the dip in voting power at a minor investee is a footnote, not a headline.
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