European Lithium’s Tanbreez Project Valued at US$273m After Strong Drilling Results
European Lithium Limited reported strong Q2 2025 progress with significant share sales in Critical Metals Corp raising over A$12.8 million, alongside promising exploration and development updates across Greenland, Austria, Ireland, and Australia.
- Raised over A$12.8 million from sales of Critical Metals Corp shares
- Tanbreez Project shows robust economics with US$120M LOI and strong PEA results
- Ongoing resource drilling and high-grade assay confirmations at Tanbreez
- Advancement of Austrian and Irish lithium exploration projects
- Joint venture engineering underway for lithium refinery in Saudi Arabia
Capital Raising and Market Moves
European Lithium Limited (ASX – EUR) has bolstered its financial position through the sale of 3 million shares in Critical Metals Corp (CRML) during and after the quarter, raising approximately A$12.8 million. This strategic divestment reflects a partial realisation of value from its 62.9 million shareholding in CRML, which at quarter-end was valued at over US$273 million. The company also listed new EUROC options on the ASX, providing shareholders with additional investment flexibility.
Tanbreez Project – A Rare Earths Powerhouse
The Greenland-based Tanbreez Project remains a cornerstone of European Lithium’s portfolio. Recent Preliminary Economic Assessment (PEA) and Scoping Study results underscore the project’s robust economics, with a Net Present Value estimated between US$2.4 billion and US$3.0 billion and an Internal Rate of Return of 162% before tax. The project’s unique heavy rare earth element (HREE) content, combined with low radioactive elements, positions it as a strategically significant non-Chinese supply source.
Resource drilling continues to extend the Mineral Resource Estimate (MRE), with recent diamond drilling confirming high-grade total rare earth oxides (TREO) averaging around 0.44%, including up to 28% HREE. A US$2 million diamond drilling contract was executed to upgrade the resource, with drilling underway to test extensions of the Fjord Eudialyte Deposit.
Global Exploration Footprint Expands
European Lithium is advancing exploration across multiple jurisdictions. In Austria, the company’s extensive Bretstein-Lachtal, Klementkogel, and Wildbachgraben projects cover over 114 square kilometres of prospective lithium terrain. Detailed mapping and sampling have identified spodumene-bearing pegmatites, with drilling planned to further delineate resources.
In Ireland, the acquisition and successful license transfer of the Leinster Lithium Project marks a significant step. The company is launching a comprehensive Q3 exploration program targeting spodumene-bearing pegmatites across multiple prospects, supported by structural and geophysical studies.
Meanwhile, in Western Australia, regulatory hurdles for the E47/4144 tenement have been resolved, clearing the way for future development. In Ukraine, the company continues to monitor geopolitical risks before commencing exploration at the Dobra and Shevchenkivske projects.
Strategic Partnerships and Refinery Development
European Lithium’s joint venture with Obeikan Investment Group is progressing engineering design for a lithium hydroxide refinery in Saudi Arabia, expected to produce up to 20,000 metric tons annually. Hatch Ltd, a global engineering firm, has been appointed to lead this work, which complements the Wolfsberg Project in Austria. The Wolfsberg Project has secured a long-term supply agreement with BMW AG and is advancing infrastructure development, including an energy supply corridor.
Financial Position and Corporate Updates
Despite operating cash outflows of A$4.7 million during the quarter, European Lithium ended with a healthy cash balance of A$20 million. Investing activities included A$4.8 million in project expenditures, offset by proceeds from share sales. The company also appointed SW Audit as its new auditor to streamline financial oversight. Director fees and related party payments totaled A$443,000 for the quarter.
Bottom Line?
With strong capital backing and advancing projects across continents, European Lithium is poised for pivotal developments in the critical minerals sector.
Questions in the middle?
- How will upcoming assay results from Tanbreez drilling impact resource estimates and project valuation?
- What are the timelines and financing plans for the Wolfsberg Project’s transition to production?
- How will geopolitical risks in Ukraine affect European Lithium’s exploration strategy there?