What did European Lithium report?

• The previously fixed share exchange ratio for the merger is now a floating ratio, subject to a cap (0.045 CRML shares for each EUR share) and a collar (minimum 0.025 CRML shares per EUR share), depending on CRML's 20-day VWAP before the scheme vote.
• Based on current market prices (CRML VWAP below US$8.00), the maximum exchange ratio applies, increasing consideration by 28.6% compared to earlier terms.
• The merger rationale and key deal protections, including a reimbursement fee, remain in place.
• The independent board committee continues to recommend the scheme, and the timeline now anticipates completion in October 2026, following shareholder and court approvals.

What else do investors need to know?

European Lithium holds a significant 31% stake in Critical Metals and has additional direct and indirect interests in strategic minerals projects, such as Tanbreez in Greenland and Wolfsberg in Austria. With the revised scheme terms, shareholders' equity in the merged group will directly reflect movements in CRML's market value.

The scheme booklet, including the independent expert's report, is on track for distribution in early September 2026. Shareholder and optionholder meetings will be held to approve the transaction, with the court process to follow. If successful, European Lithium shareholders are expected to own around 38% of the combined entity.

What's next for European Lithium?

The updated transaction structure aims to give shareholders more value certainty by softening the impact of CRML's share price volatility before the deal closes. European Lithium and Critical Metals Corp continue to seek the required approvals and are focused on meeting regulatory, court, and shareholder milestones to complete the merger in October.

Strategically, the combination could position the combined group as a key supplier to Europe's critical minerals and battery industries, with assets that align well to rising demand from the clean energy and electric vehicle sectors.

European Lithium share price snapshot

Over the past 12 months, European Lithium shares have risen 227%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

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At the time of writing, the ASX lithium share is up a massive 57% to 44.7 cents.

What is driving this explosive move from the ASX lithium share?

The massive gain has been driven by the announcement of a proposed combination with NASDAQ-listed Critical Metals Corp (NASDAQ: CRML).

According to the release, European Lithium has entered into a non-binding indicative agreement that will see Critical Metals acquire 100% of its shares via a scheme of arrangement.

If completed, shareholders would receive scrip in Critical Metals valued at approximately A$0.58 per European Lithium share.

This is a significant premium. Based on recent trading prices, the deal represents a 137% premium to European Lithium's last closing price and a 113% premium to its 20-day volume weighted average price.

The independent board committee (IBC) commented:

After careful consideration, the IBC determined to recommend to the EUR Board that it would be in the best interests of EUR shareholders to enter the non-binding indicative agreement to further progress the Proposal. The IBC will continue to engage with CRML and will advise shareholders on the merits of the Proposal and any potential future entry into binding transaction documentation.

Strategic rationale

The release notes that proposed transaction would effectively consolidate European Lithium with Critical Metals, where it already holds a significant stake.

Management believes this would simplify the investment structure and remove the look-through valuation currently applied to its shareholding in Critical Metals.

It would also give shareholders direct exposure to a NASDAQ-listed ASX share with greater liquidity and broader access to capital markets.

In addition, the combined entity would strengthen its position in critical minerals, including rare earths, and lithium assets across Europe and Greenland.

Not a done deal

It is important to note that the proposal is non-binding at this stage.

The transaction remains subject to due diligence, regulatory approvals, and the negotiation of binding agreements.

European Lithium has warned that there is no guarantee the deal will ultimately proceed.

However, the ASX lithium share's independent director and IBC chair, Michael Carter, believes it would be a major positive for shareholders if it went ahead. He said:

This transaction will deliver substantial value to EUR shareholders, priced at a 136% premium. The combination will enable EUR shareholders to directly own interests in Critical Metals Corp. which will be strategically positioned as the sole owner of the Tanbreez rare earth project in Greenland and will benefit from substantial cash balances and a portfolio of critical minerals development opportunities.

The post Why is this ASX lithium share rocketing 57% today? appeared first on The Motley Fool Australia.

Significant takeover premium

Under the proposal, Critical Metals would acquire European Lithium in a scrip deal, offering 0.035 of its shares for each European Lithium share, valuing European Lithium at 58 cents per share.

This is more than a 100% premium from the closing price of 28.5 cents before European Lithium shares were placed in a trading halt last Friday.

European Lithium shareholders would own 45% of the combined company once the deal goes through.

European Lithium said in its statement to the ASX on Tuesday that the combination of the two companies would give shareholders exposure to "a NASDAQ-listed company with significantly higher liquidity and investor demand''.

It also points out that European Lithium's largest asset is its 34% interest in Critical Metals.

As well as that relationship, the companies are joint venture partners in the Tanbreez rare earths project in Greenland, which Critical Metals owns 92.5% of and European Lithium the remainder.

The proposal is non-binding at this stage, and both companies have agreed to negotiate exclusively with one another, "to complete due diligence and execute a binding scheme implementation deed by 7 May 2026''.

Deal represents good value

European Lithium has established an independent board committee (IBC) to assess the merits of the deal.

European Lithium Independent Director and IBC Chair Michael Carter said:

This transaction will deliver substantial value to EUR shareholders, priced at a 136% premium. The combination will enable EUR shareholders to directly own interests in Critical Metals Corp. which will be strategically positioned as the sole owner of the Tanbreez rare earth project in Greenland and will benefit from substantial cash balances and a portfolio of critical minerals development opportunities.

European Lithium said the proposal was non-binding at this stage and shareholders did not need to take any action.

European Lithium said regarding the Tanbreez rare earths project that it was "an advanced, permitted asset poised to become a cornerstone in the global supply of rare earth elements for North America and Europe''.

Critical Metals also owns 100% of the Wolfsberg lithium project in Austria.

This was, European Lithium said, "a fully licensed, government-backed lithium mine built by the Austrian government and primed to play a central role in the region's integrated lithium-ion battery supply chain''.

European Lithium shares were 57.9% higher in early trade at 45 cents.

The post This ASX lithium company's shares have jumped more than 50% on major merger news appeared first on The Motley Fool Australia.

The Australian Financial Review has published an article saying that European Lithium has been in talks with the NASDAQ-listed Critical Metals Corp (NASDAQ: CRML), with which it is also a joint venture partner.

Major takeover premium

The AFR reports that a potential takeover is in the wings, priced at 58 cents per share, more than double the 28.5 cents per share at which the company last traded.

The takeover offer would value European Lithium at about $1.2 billion, well up on the $489.1 million it is valued at currently.

European Lithium was not giving much away in the announcement it made to the ASX on Friday.

As the company said:

The trading halt is requested pending an announcement relating to media speculation of a potential control transaction. The Company requests that the trading halt remain in place until the earlier of the commencement of normal trading on Tuesday, 28 April 2026 or until the release of an announcement in respect of the above matter. There is no other information necessary to inform the market about and the Company is not aware of any reason why the trading halt should not be granted.

The AFR is reporting that European Lithium already owns a stake of about 37.5% in the NASDAQ-listed company.

Projects moving forward

The companies also jointly own the Tanbreez rare earths project in Greenland, where they announced recently that the government had approved the transfer of the remaining 50.5% stake in the project to Critical Metals, bringing its holding to 92.5%, while European Lithium owns the remainder.

European Lithium Executive Chair Tony Sage said at the time:

This is a game-changing moment for Critical Metals and solidifies its position as the controlling stakeholder in one of the world's largest rare earth deposits. The full support and approval of the Greenlandic Government has removed the most significant structural overhang on the Tanbreez Project and provides the clarity to advance the Tanbreez Project to production with confidence." "We are now progressing with momentum, supported by advancing technical programs, strong metallurgical results, and engagement with our offtake partners. Tanbreez is no longer a future project — it is a project in development.

European Lithium's other major asset is the Wolfsberg lithium project in Austria.

The post Is this ASX lithium stock a takeover target? Sure looks like it appeared first on The Motley Fool Australia.

The stock is up 12.25% to 27.5 cents, adding to a strong run that has been building over recent months.

That move leaves the shares up roughly 80% in 2026, as interest across lithium names starts to return following last year's downturn.

There has been no shortage of volatility for European Lithium, but today's jump stands out from the recent trend.

It comes after a new update was released to the market.

Here's what investors are reacting to.

Full control of Tanbreez project locked in

In a statement to the ASX, European Lithium said Critical Metals Corp (NASDAQ: CRML) will move to full ownership of the Tanbreez rare earths project in Greenland.

The deal involves picking up the remaining 50.5% stake, bringing the project under a single owner.

European Lithium will keep a 7.5% free carried interest in Tanbreez.

This removes the split ownership and makes decision-making more straightforward.

Tanbreez is seen as one of the larger rare earths deposits globally, and full ownership helps move it closer to development.

Management also pointed to recent approval from the Greenland government, which clears a key step for the project.

Ownership shift brings clearer pathway

With one owner in place, attention now shifts to what happens next on the ground.

Joint venture structures can slow things down, especially when major funding decisions are involved.

Full ownership gives Critical Metals direct control over timelines, capital allocation, and development plans.

European Lithium still keeps exposure through its retained interest, but without being involved day to day.

That setup removes some of the unknowns around the project and is starting to draw interest from investors.

Lithium sentiment starts to turn

The update lands as conditions across battery materials begin to improve.

Lithium prices have lifted in 2026 after a long decline, with demand expectations picking up and supply looking tighter.

That change has started to show up across ASX-listed names, particularly those linked to large or strategic assets.

European Lithium is not a pure lithium producer, but its rare earths exposure still links into the broader electrification push.

As pricing steadies, investors are starting to revisit names that were sold down heavily last year.

Foolish Takeaway

This kind of move can pull attention back in quickly, especially after a strong run.

But the stock has already climbed a long way this year and still trades with large swings.

Keep in mind that moves like this can fade just as fast as they appear.

For me, this is one to watch rather than chase.

There are other ASX stocks where the setup looks more consistent and easier to follow.

The post This ASX lithium stock just exploded 12%. Here's what sparked it appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Breville Group Ltd (ASX: BRG)

The Breville share price is down 4.5% to $28.26. This is despite there being no news out of the appliance manufacturer. However, it is worth noting that consumer discretionary sector is out of form today. So much so, the S&P/ASX 200 Cons Disc index is down 1.1% at the time of writing.

European Lithium Ltd (ASX: EUR)

The European Lithium share price is down 33% to 16.7 cents. This morning, this lithium explorer advised that Critical Metals Corp. (NASDAQ: CRML) has sold 3 million CRML shares to a single US institutional investor at US$7 per share. This represents a 12% discount to its last close price. This has raised US$21 million (A$31.75 million) in net proceeds for European Lithium. The company's executive chair, Tony Sage, said: "This transaction again highlights the value of the Company's holding in CRML. The remaining 60 million shares held in CRML, using the $US11.50 closing price on the Nasdaq yesterday, values the Company's holding at approximately $US689M ($A1,061m), which is well above the current market capitalisation of EUR."

Reece Ltd (ASX: REH)

The Reece share price is down over 4% to $11.12. This has been driven by the plumbing parts company's shares going ex-dividend this morning for its final dividend of FY 2025. In August, the company released its full year results and declared a fully franked final dividend of 11.9 cents per share. This will be paid to eligible shareholders later this month on 22 October.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 15% to 50.2 cents. This morning, this gold miner revealed that it has received firm commitments for an institutional placement to raise a total of $58 million before costs. These funds are being raised at a 22% discount of 46 cents per new share. Management notes that the placement was overbid, with significant demand from leading Australian and international institutional investors. It also received strong support from existing institutional shareholders. St Barbara's managing director and CEO, Andrew Strelein, said: "The placement allows us to progress the change out of the truck fleet at Simberi to improve efficiency and reliability, as well as finalising the Feasibility Study and advancing Pre-Expansion Growth Capital items. The new funds will also enable us to complete the Pre-Feasibility Study on the 15-Mile Processing Hub at Nova Scotia, which is due in the March quarter of 2026, and progress plans for the potential re-opening of Touquoy for stockpile processing."

The post Why Breville, European Lithium, Reece, and St Barbara shares are sinking today appeared first on The Motley Fool Australia.

If the stock can hold onto these gains by market close, this will mark the fifth consecutive trading day that shares have gained at least 10%.

European Lithium shares closed yesterday at 4.6 cents apiece. In morning trade today, they leapt to 6.3 cents, up 37.0%. After some likely profit-taking, they are trading for 6.0 cents apiece at the time of writing, up 30.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.6% at this same time.

As for the past few days of trade, the ASX lithium stock gained 15.0% last Wednesday, 10.0% on Thursday, 21.2% on Friday, and closed up another 15.0% yesterday.

Checking the charts, you could have bought European Lithium shares last Tuesday for 2.6 cents apiece. And your investment would already have soared 130.8%.

Boom!

Here's what looks to be driving ongoing investor enthusiasm today.

ASX lithium stock rocketing on project progress

The ASX lithium stock appears to be enjoying ongoing support from the update on its Wolfsberg Lithium Project, released several hours after market open on Monday.

The Wolfsberg Lithium Project is located in Austria.

According to the release, ECM Lithium, a wholly owned subsidiary of Critical Metals Corp (NASDAQ: CRML), was notified by the Carinthian state government that an Environmental Impact Assessment (EIA) is not required for the project.

European Lithium holds 74.3% of the ordinary shares in Critical Metals.

The ASX lithium stock said that with underground mining, where the surface area required by the above-ground facilities is less than 10 hectares, no EIA is required by law. Management expects lithium mining on the Koralpe to fall within these bounds.

Investor interest was likely spurred, with the company calling this "an important step" toward realising the project and establishing a European battery supply chain.

What did management say?

Commenting on the EIA waver sending the ASX lithium stock flying higher, European Lithium chairman Tony Sage said, "This is an extraordinary achievement for Critical Metals Corp and our Wolfsberg project, as we chart a path forward for the production of critical minerals in Europe."

He added:

This decree makes the Wolfsberg Project the first new mining project within the EU that is able to pave the way into the fast-track approval process for new mining projects in the critical minerals sector.

This is a significant milestone towards sustainable production of lithium from Austrian mining extraction in an integrated European supply chain located in the heart of Europe.

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