European Lithium (ASX:EUR) said that the Austrian government extended Critical Metals' mining license for the Wolfsberg lithium project in Vienna, for a further two years, according to a Monday filing with the Australian bourse.

In 2022, the company agreed to merge with Sizzle, a US special purpose acquisition company, and sell down its interest in the project to create Critical Metals.

European Lithium currently owns 48 million shares in Critical Metals.

Shares of the company fell 9% in recent Monday trade.