Oct 26 (Reuters) - Australia-listed European Lithium Ltd said on Wednesday it would sell down its stake in the Wolfsberg lithium project and merge with blank check firm Sizzle Acquisition Corp to form a new lithium exploration and development company.

Upon closing of the deal, European Lithium will be issued $750 million worth of shares, equal to a stake of about 80% in the new company, Critical Metals Corp, which will be listed on the Nasdaq. (Reporting by Jaskiran Singh in Bengaluru; Editing by Anil D'Silva)