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Highlights
- European Lithium secures US$5M from a share transaction
- Major drilling initiative begins at Tanbreez Rare Earth Project
- Strategic developments underline valuation gap in dual-listed stocks
European Lithium (ASX:EUR) has significantly strengthened its financial footing and exploration agenda following a key transaction involving its US-based associate, Critical Metals Corp. (Nasdaq:CRML). In a notable off-market deal, European Lithium sold 2 million shares of Critical Metals at US$2.50 apiece, raising US$5 million (approximately A$7.8 million). This move not only infuses additional capital into the company but also sheds light on a potential valuation gap between dual-listed entities.
The transaction puts a spotlight on the difference in market perceptions. Based on the closing price as of 24 June 2025, Critical Metals is trading with a market cap of US$250 million (around A$389 million), which many view as a reflection of untapped valuation in the shares held by European Lithium. This highlights a broader arbitrage opportunity between regional markets.
Accelerating Rare Earths Exploration
Adding further momentum, Critical Metals has committed US$2 million (A$3 million) to a drilling contract for a 2,000-metre diamond drilling program at the Tanbreez Rare Earth Project in Greenland. The contract was awarded to 60 Degree North, a regional drilling specialist. European Lithium, which owns a 63% stake in Critical Metals, considers this development a crucial step toward resource classification and potential expansion.
The Tanbreez project holds significant promise, with the Fjord Deposit alone estimated to contain 22.56 million tonnes (Mt), contributing to a broader resource of 44.87 Mt. The new drilling campaign, set to begin in July, will focus on upgrading the existing Inferred resources to Indicated status, thus reinforcing the project's development prospects.
The initiative aligns with a previously announced US$120 million Letter of Intent from the US Export-Import Bank, which is expected to further support the ongoing development of the Tanbreez Project.
Broader Market Implications
European Lithium's latest steps come at a time when the S&P/ASX 200 is showing dynamic movements, making it a favorable environment for resource-focused companies seeking capital and investor attention.
While European Lithium is not currently a constituent of the ASX200, its activities reflect the kind of high-impact strategies that often contribute to investor interest and market engagement across the sector. The company’s increased cash reserves and drilling momentum underscore its forward strategy amid a growing focus on critical minerals.
