European Lithium’s Greenland Resource and Financing Raise Signal Critical Growth Risks
European Lithium Limited reports a maiden 45 million tonne rare earth resource at its Greenland Tanbreez Project, alongside a $24.5 million capital raise by its majority-owned Critical Metals Corp, underpinning its global lithium and rare earth ambitions.
- Tanbreez Project maiden mineral resource estimate of 45MT at 0.38% TREO with 27% heavy rare earth elements
- High-grade deep drilling confirms significant rare earth and critical metal mineralization to depths over 300m
- Critical Metals Corp completes $24.5 million placement to fund Greenland and Austrian lithium projects
- Advancement of lithium refinery joint venture in Saudi Arabia with engineering by Hatch Ltd
- Exploration progress across Austrian and Irish lithium projects and regulatory milestones in Western Australia
Greenland's Tanbreez Project: A Rare Earth Powerhouse Emerges
European Lithium Limited (ASX: EUR) has delivered a landmark update for its flagship Tanbreez Rare Earth Project in Greenland, announcing a maiden JORC 2012 compliant mineral resource estimate of 45 million tonnes grading 0.38% total rare earth oxides (TREO), including a remarkable 27% heavy rare earth elements (HREE). This positions Tanbreez as a globally significant critical minerals asset, uniquely rich in high-value HREEs, which are essential for advanced technologies and defense applications.
Complementing the resource estimate, recent deep diamond drilling has confirmed high-grade mineralization extending to depths of 338 meters, with assays revealing TREO grades up to 0.44% and HREE content reaching 28%. Notably, the discovery of gallium oxide at concentrations exceeding 100ppm adds a valuable by-product potential, diversifying the project's critical metals portfolio.
Robust Economics and Strategic Partnerships
Following the quarter, Critical Metals Corp (NASDAQ: CRML), in which European Lithium holds approximately 68%, announced a Preliminary Economic Assessment and Scoping Study for Tanbreez. The studies highlight a net present value between US$2.4 billion and US$3.0 billion and an internal rate of return of 162% before tax, underscoring the project's strong economic fundamentals and strategic importance as a non-Chinese rare earth supplier.
In parallel, CRML successfully completed a US$24.5 million private placement to accelerate development activities at Tanbreez and the Wolfsberg Lithium Project in Austria. The company is also progressing a US$500 million convertible note facility, further strengthening its financial position.
Global Expansion: Austria, Ireland, and Saudi Arabia
European Lithium continues to advance its diversified portfolio with exploration and development across multiple jurisdictions. In Austria, the Wolfsberg Project has achieved a significant environmental milestone, fast-tracking its transition towards production. The project benefits from a binding long-term supply agreement with BMW AG for battery-grade lithium hydroxide, reflecting strong market demand.
Meanwhile, the company’s Austrian Lithium Projects, including Bretstein-Lachtal, Klementkogel, and Wildbachgraben, have identified multiple spodumene-bearing pegmatite bodies with lithium oxide grades up to 3.98%, with drilling programs planned to expand these resources.
In Ireland, European Lithium completed the acquisition of the Leinster Lithium Project, strategically located along a major tectonic structure known for lithium-bearing pegmatites. Exploration programs are set to commence in Q2 2025, targeting several high-priority prospects.
Further afield, a joint venture with Obeikan Investment Group is progressing the design and engineering of a lithium hydroxide refinery in Saudi Arabia, led by Hatch Ltd. The refinery aims to produce up to 20,000 metric tons of battery-grade lithium hydroxide, supporting the growing electric vehicle supply chain.
Financial Position and Corporate Developments
European Lithium reported a strong cash position of A$19.3 million at quarter-end, supported by CRML’s capital raising and ongoing investments. The company also holds strategic stakes in several exploration companies, including Cyclone Metals Ltd and Moab Minerals Limited, enhancing its exposure to complementary critical minerals.
Payments to related parties during the quarter were disclosed at $636,000, primarily comprising director fees and office costs. The company is managing its capital structure prudently, offering new options to shareholders to support future funding needs.
Looking ahead, European Lithium plans to commence resource drilling at Tanbreez to expand the current 45MT resource and awaits assay results from recent drilling campaigns, which will be pivotal in refining the project’s development pathway.
Bottom Line?
With a robust resource base and strategic capital injections, European Lithium is poised to deepen its footprint in the critical minerals sector, but upcoming assay results and financing milestones will be key to sustaining momentum.
Questions in the middle?
- How will upcoming assay results from Tanbreez drilling impact resource confidence and project valuation?
- What are the timelines and risks associated with the Wolfsberg Project’s transition to production?
- How will the Saudi Arabia lithium refinery JV influence European Lithium’s downstream integration strategy?
