Australian company European Lithium Limited is continuing the integration of Ukraine’s titanium group Velta. Following the signing of an agreement to acquire 100% of Velta’s shares, the company has taken the next step by purchasing Velta’s outstanding debt through its Ukrainian subsidiary.
LLC “European Lithium Ukraine” won a Dutch auction organized by Ukraine’s Deposit Guarantee Fund, which was selling claims under credit agreements signed in 2011 and 2013 between the now-liquidated Prominvestbank and LLC VKF “Velta.” With a starting price of UAH 8.95 billion, the asset was acquired for UAH 894.8 million—almost ten times below the initial valuation.
Velta emphasized that the auction was part of the legally mandated bank liquidation process. The company continues its production activities and is preparing to finalize an international agreement that is expected to open a new stage in the development of its critical materials projects. The credit obligations were formed more than ten years ago and were restructured in 2023 without any write-offs or debt forgiveness.
The increase in the hryvnia equivalent of the debt in recent years is primarily attributed to currency revaluation, as most of the obligations are denominated in U.S. dollars, while the actual foreign currency component increased by only about 5%. The settlement of the debt is viewed as part of the broader transaction to integrate Velta into an international corporate structure.
In late January, European Lithium, whose shares are traded on the Australian Securities Exchange under the ticker EUR, entered into a binding agreement to acquire 100% of Velta Holding, a U.S.-based titanium company that owns mining and production assets in Ukraine. The transaction provides for a share swap: European Lithium will gain full control of Velta, while Velta’s current shareholders will receive a 10% stake in the Australian company.
As a result, Velta will be integrated into the U.S.–Australian group Critical Metals Corp. Executive Chairman of European Lithium, Tony Sage, previously stated that the acquisition expands the company’s strategic focus from lithium to a broader range of critical and strategic minerals. Titanium, he noted, is a key material for aerospace, defense, medical, and industrial applications, and Velta’s assets and technological base provide a platform for further growth.
European Lithium’s financial performance has shown gradual improvement. For the 2025 financial year ended June 2025, the company’s revenue increased to AUD 1.13 million compared to AUD 0.7 million a year earlier, while its net loss narrowed to AUD 71.49 million from nearly AUD 195 million in the previous financial year. As of the end of January 2026, European Lithium held a 44.982% stake in U.S.-based Critical Metals, with a market value estimated at approximately $879 million.
Velta primarily operates in Ukraine’s Kirovohrad region and, according to its own estimates, accounts for about 2% of the global titanium raw materials market. The holding is developing the Birzulivske deposit, where a beneficiation plant was commissioned in 2012, and operates a transshipment complex in Novomyrhorod. Its portfolio also includes the Likarivske deposit and the leased former Novomyrhorodska mine, where processing capacities for metallic zirconium, hafnium, titanium, and related products are being designed.
The company’s resource base includes millions of tonnes of ilmenite, significant reserves of zirconium, kaolin, and clay. Planned production volumes encompass both raw materials and high value-added products, including titanium powders and finished goods.
In autumn 2025, during a visit by representatives of the U.S. International Development Finance Corporation and the U.S.–Ukraine Recovery Investment Fund, Velta presented projects to establish a critical raw materials cluster with total planned investments of approximately $243 million over four years. Velta’s structure also includes the R&D center Velta RD Titan and the customized titanium implants manufacturer Velta Medical. The holding’s ultimate beneficiaries are Andriy Brodskyy (60%) and Vadym Moskalenko and Vitaliy Malakhov (20% each).
European Lithium itself is an exploration and development-stage mining company focused on lithium assets in Austria, Ukraine, and Ireland, as well as projects in Australia and Greenland. In Ukraine, its subsidiary participated late last year in a production-sharing agreement tender for the Dobra lithium deposit but was not selected as the winner. Against this backdrop, the acquisition of Velta’s debt appears as a logical component of the broader transaction aimed at transferring control of the Ukrainian titanium group to European Lithium and strengthening its position in the critical minerals segment.
