European Lithium Strengthens Position with Strategic Debt Acquisition

In a strategic financial maneuver, European Lithium has successfully acquired the outstanding debt obligations of Ukrainian titanium producer Velta at a substantial discount. This transaction represents a pivotal step in the company’s broader plan to fully integrate the resource producer into its corporate structure.

A Strategic Purchase at a Fraction of Face Value

The acquisition was finalized on March 2, 2026, through an online auction process. European Lithium’s Ukrainian subsidiary, LLC “European Lithium Ukraine,” was the sole participant in the bidding, securing the debt via the Prozorro.Sales electronic system. The sale was administered by Ukraine’s Deposit Guarantee Fund as part of the liquidation proceedings for Prominvestbank, the original creditor.

The debt originated from loan agreements signed between Velta and the now-defunct bank in 2011 and 2013. These loans were secured against Velta’s production facilities, guarantees, and other mining-related assets. The auction commenced with a starting price of 8.95 billion Hryvnia.

Employing a Dutch auction format where the price decreased incrementally by one percent, the final purchase price settled at 894.9 million Hryvnia. This figure represents a dramatic 90 percent discount from the nominal value. It is noteworthy that Velta had previously restructured these loans in 2023. The significant size of the debt was largely attributed to currency effects, as the liabilities were predominantly denominated in US dollars.

A Cornerstone for Complete Acquisition

This debt deal is a key component of a larger corporate strategy. In late January 2026, European Lithium entered into a binding agreement to acquire 100 percent of the US-based Velta Holding. Velta operates mining and production facilities in the Kirovohrad Oblast and claims to supply approximately two percent of the global market for titanium raw materials.

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

The terms of the overarching acquisition involve a share exchange. European Lithium is set to issue roughly 173 million new ordinary shares to gain full control of Velta. In return, the existing shareholders of Velta will receive a ten percent equity stake in European Lithium. The completion of this transaction remains subject to final due diligence and customary closing conditions.

Upon finalization, Velta will be integrated into the corporate group of Critical Metals Corp. As of the end of January 2026, European Lithium held a 44.982 percent stake in Critical Metals Corp, an investment with a market value of approximately $879 million.

Financial Performance and Market Activity

European Lithium has shown progress in its financial performance. For the fiscal year ending June 2025, the company reported a reduced net loss of 71.49 million Australian dollars, a significant improvement from a loss of 195 million Australian dollars in the prior year. Concurrently, revenue increased from 0.7 million to 1.13 million Australian dollars.

Trading activity on March 4, 2026, saw the company’s shares close at 0.245 Australian dollars, marking a decline of 3.92 percent for the session. During the day, the stock traded within a range of 0.245 to 0.255 Australian dollars, with a volume of five million shares changing hands.