European Lithium has closed a business partnership with Sizzle Acquisition, resulting in the creation of Critical Metals.

This move positions the Wolfsberg Lithium Project as Critical Metals’ initial flagship asset, with the company’s immediate attention on the future construction and commissioning of the mine.

The successful completion of the transaction and the subsequent listing of Critical Metals on the Nasdaq are pivotal in supporting the development of the essential lithium asset, which is crucial for Europe’s green energy transition.

As part of the transaction, European Lithium has been issued 67,788,383 ordinary shares in Critical Metals, making it the largest stockholder with an 83.03% stake in the issued capital.

The value of European Lithium’s investment in Critical Metals is currently estimated at $839m (A$1.3bn), based on the closing share price of $12.38 per share as of 29 February 2024.

This valuation is subject to fluctuations in the share price of Critical Metals.

With this significant interest, European Lithium is closely aligned with Critical Metals’ vision to become a key supplier for the lithium-ion battery supply chain in Europe.

European Lithium will continue to monitor the progress of the Wolfsberg Project and expects to benefit from Critical Metals’ future success as they implement their strategic plans.

European Lithium chairman Tony Sage said: “The company is thrilled to announce completion of the transaction that brings Critical Metals to life and supports the future commercialisation of the Wolfsberg Project on Nasdaq.

“I want to extend our gratitude to the many hard-working contributors, Sizzle and EUR shareholders without who this would not be possible.

“With access to US capital markets and funds raised in the process of the listing, we believe that Critical Metals is well positioned to become a key supplier for the lithium-ion battery supply chain in Europe. Critical Metals’ future success as a Nasdaq-listed company is also expected to create a significant increase in shareholder value for EUR shareholders.”