European Lithium Raises A$187m, Reports High-Grade Rare Earths at Tanbreez

Funding Strengthened by Strategic Share Sales

European Lithium Limited (ASX, EUR) has fortified its financial position through the sale of shares in Critical Metals Corp (CRML), raising approximately A$5.2 million during the September quarter and a further A$183 million post-quarter. These transactions have bolstered the combined cash reserves of European Lithium and CRML to around A$325 million, providing substantial liquidity to support ongoing exploration and development activities.

Exceptional Drilling Results at Greenland’s Tanbreez Project

The company reported outstanding diamond drilling results from the Tanbreez Rare Earth Project in Greenland, a flagship asset held through CRML. Historical and recent 2024 drilling programs revealed high-grade rare earth element (REE) concentrations, with total rare earth oxides (TREO) ranging from 0.4% to 0.89% and heavy rare earth elements (HREE) comprising approximately 26-27% of the mix. Notably, gallium oxide levels reached up to 140ppm, underscoring the deposit’s unique value proposition. These results reinforce the project’s potential as a significant source of heavy rare earths, which are critical for advanced technologies and have higher market value than light rare earths.

Resource Upgrade Drilling and Future Outlook

European Lithium and CRML have completed 2,500 meters of resource upgrade diamond drilling at Tanbreez, with additional drilling ongoing. Assay results from the 2024 drilling campaign are expected in November 2025, with an upgraded mineral resource estimate anticipated in the first half of 2026. The current JORC-compliant maiden resource stands at 45 million tonnes of eudialyte containing 0.38% TREO, including 27% HREE, alongside substantial feldspar and arfvedsonite by-products.

Progress Across European and Australian Lithium Projects

Exploration activities continue across European Lithium’s Austrian lithium projects, comprising 245 exploration licenses covering 114.6 km² in the Styria mining district. Mapping and sampling have identified spodumene-bearing pegmatites with lithium oxide contents up to 3.98%, with drilling planned to further delineate targets. In Ireland, the recently acquired Leinster Lithium Project has mobilized field crews to conduct geochemical and geological surveys, aiming to define priority drilling targets for 2026. Meanwhile, Australian tenements are advancing through regulatory processes, with stakeholder objections resolved.

Wolfsberg Project Advances Toward Development

The Wolfsberg Lithium Project in Austria has achieved a key milestone with the completion of the energy supply corridor planning, facilitating the transition from exploration to operational readiness. The project benefits from a binding long-term supply agreement with BMW AG for battery-grade lithium hydroxide, underscoring its strategic importance in the European electric vehicle supply chain. Discussions on project financing are progressing as the project nears a build decision.

Corporate and Financial Highlights

During the quarter, European Lithium issued performance rights and options to directors and consultants, subscribed to a convertible loan note in Pan African Niger Limited, and made strategic investments in other mining companies including Cyclone Metals, Moab Minerals, and Cufe Ltd. Cash flow reflected operating outflows related to exploration and corporate costs, partially offset by proceeds from share sales. Payments to related parties primarily comprised director fees and office occupancy costs.