CRITICAL METALS CORPORATION (CRML) saw its stock price soar 10.99% during pre-market trading on Monday, marking a significant upward movement.

The surge follows the company's announcement that it has signed a letter of intent to acquire all outstanding shares of European Lithium in an all-stock deal valued at approximately $835 million. Under the proposed terms, European Lithium shareholders would receive 0.035 shares of Critical Metals for each share held.

The acquisition is strategically significant as it will give Critical Metals full ownership of the Tanbreez rare earth project in Greenland. Furthermore, the deal is expected to eliminate a large cross-shareholding, reduce equity dilution, and bolster the company's balance sheet by adding European Lithium's cash reserves.