European Lithium Ltd reported a share price rise of more than 33% on Friday after announcing an on-market share buy-back program. The company said the repurchase would be aimed at enhancing shareholder value and strengthening investor confidence. Shares rose to A$0.12, up A$0.03 or 33.3%.
On-market share buy-back details
The buy-back plan involves repurchasing up to 135 million ordinary shares, which the company said is around 10% of its issued capital. Based on the closing price as of September 30, European Lithium estimated the total value of the buy-back at approximately A$12.6 million. The program is scheduled to start no earlier than October 17 and end no later than March 31, 2026, depending on market conditions.
The company stated that the program will be managed by Evolution Capital. It will be conducted within the “10/12 limit” permitted under Australia’s Corporations Act 2001. European Lithium said this structure means no shareholder approval is required.
Tanbreez rare earth project ownership changes in Greenland
The buy-back announcement followed a separate development involving European Lithium and its US-listed affiliate, Critical Metals Corp. The companies said they secured a deal that would give Critical Metals majority control of the Tanbreez Rare Earths Project in southern Greenland. The agreement remains subject to approval by the Greenland government.
Critical Metals revised its arrangement with project founder Gregory Barnes and Rimbal, increasing its stake in Tanbreez from 42% to 92.5%. The change is to occur through the issuance of 14.5 million Critical Metals shares, while European Lithium will hold a 7.5% minority interest. Completion is expected by October or November.
Resource scale cited for Tanbreez
Barnes said Tanbreez is strategically important for the global rare earths supply chain, including efforts by Western economies to reduce reliance on China. He described the project as hosting around 4.7 billion tonnes of rock containing high-grade heavy rare earth elements and gallium. Barnes said the resource has potential to affect access to critical minerals.
The company’s statements linked the two announcements—financial measures through the buy-back and expansion through the Tanbreez ownership change—to investor expectations for its strategic direction. European Lithium did not provide additional project figures beyond those cited for Tanbreez in its related disclosure.