Critical Metals Corp. (NASDAQ: CRML) announced the execution of a binding agreement to acquire all issued shares and listed options of European Lithium Ltd. (ASX: EUR) through two schemes of arrangement under Australian law.

Under the transaction, European Lithium shareholders will receive 0.035 Critical Metals shares for each European Lithium share held. The acquisition will give Critical Metals access to European Lithium's cash balance of approximately AUD$306 million (US$219 million) as of March 31, 2026, and an additional US$18 million in marketable securities.

The deal will consolidate Critical Metals' ownership of the Tanbreez Rare Earth Project in Greenland to 100%, as European Lithium currently owns a 7.5% stake in the project. Critical Metals already owns the remaining 92.5% of Tanbreez.

European Lithium currently holds 45,536,338 shares of Critical Metals, representing approximately 31% of outstanding shares. Critical Metals plans to minimize these cross-holding shares following completion, which the company states will reduce shareholder dilution and increase its public float.

The transaction requires several conditions including European Lithium shareholder approval, maintaining a net cash and liquid assets balance of at least AUD$330 million, regulatory approvals, and court approvals. A shareholder meeting for European Lithium is expected in the third quarter of 2026.

Critical Metals CEO Tony Sage stated the transaction offers "clear, material benefits to Critical Metals shareholders" and positions the company as a rare earths developer with a strengthened balance sheet.

The transaction is expected to complete in the second half of 2026, according to the company's statement.