European Lithium Shares Surge on Share Buyback and US Interest in Key Project
European Lithium's shares have risen recently, reflecting investor confidence in the company's strategic moves. The company has announced a significant share buyback program and raised substantial capital for its key project.
European Lithium has initiated a share buyback program worth AU$12.6 million, based on the closing price on September 30. This program, set to begin no earlier than October 17 and end by March 31, 2026, will involve up to 135 million shares, approximately 10% of the issued capital. Management believes the company is undervalued, with a market capitalization of around AU$130.9 million and a Critical Metals stake valued at AU$678 million.
The company's subsidiary, Critical Metals Corp, has raised USD$35 million in fresh capital. These funds will be used to advance the Tanbreez project in South Greenland, which hosts an estimated 4.7 billion tonnes of rare earths. Reports suggest potential European government interest in this project, highlighting its strategic significance. In early October 2025, negotiations regarding a potential European government stake in the project became publicly known following a Reuters report.
European Lithium's share buyback program and capital raise for the Tanbreez project demonstrate the company's commitment to unlocking the value of its assets. The potential European government interest in the project further underscores its strategic importance.
