Critical Metals’ Greenland Success Boosts European Lithium Stake

Shares of European Lithium saw significant gains during Tuesday's trading session on its home Australian exchange. The rally was not driven by company-specific news, but by positive operational results from its U.S.-based partner, Critical Metals Corp. Investors responded favorably to promising drilling data from Greenland, which directly enhances the intrinsic value of European Lithium's strategic investment.

The core of the investor enthusiasm stems from the final assay results of the 2025 drilling program at the Tanbreez rare earths project. Critical Metals Corp (Nasdaq: CRML), in which European Lithium holds a substantial interest, reported continuous mineralization in the key "Area B" and "Fjord Deposit" zones.

Data released on February 9 confirms high concentrations of total rare earth oxides (TREO). Of particular long-term significance is the finding that mineralization remains open along strike, indicating considerable potential for further resource expansion. Tony Sage, Executive Chairman, emphasized that these results substantially de-risk the project and establish a robust technical foundation for the planned 2026 field season, which will focus on mine design optimization and advanced resource studies.

Should investors sell immediately? Or is it worth buying European Lithium?

For European Lithium shareholders, this development carries direct implications. The company maintains a major holding of over 45 million shares in the Nasdaq-listed Critical Metals Corp. Just days prior, European Lithium bolstered its balance sheet through a partial sale of this position, generating approximately 45 million Australian dollars (AUD) in proceeds.

The market is now reassessing the value of the remaining stake. The technical success in Greenland increases the market capitalization of the U.S. partner, thereby raising the "look-through" value for European Lithium. This was reflected in Tuesday's notably elevated trading volumes, as the market viewed the reduced financial risk alongside tangible partner progress as a positive combination.

Greenland Project Delivers Strong Results

This recent progress validates the strategic approach of participating in the critical minerals value chain through strategic equity holdings. With the Tanbreez project positioned as a potential long-term source for electrification and defense industries, the operational trajectory of Critical Metals Corp remains the primary driver for European Lithium's future share price performance.