Critical Metals boosts Greenland rare earth stake to 92.5%

Critical Metals Corp (Nasdaq: CRML) will lift its ownership in the Tanbreez rare earth project in southern Greenland to 92.5%, positioning itself to control one of the world’s largest rare earth deposits, major shareholder European Lithium (ASX: EUR) announced Thursday.Under the revised agreement, Critical Metals will raise its stake in Tanbreez Mining Greenland AS from 42% to 92.5% by issuing 14.5 million shares to Rimbal Pty Ltd, a company controlled by project founder Gregory Barnes. The agreed price of $8 per share represents a 23% premium to Critical Metals’ last close of $6.49, valuing the transaction at $116 million.Barnes waived an earlier requirement for Critical Metals to invest $10 million before qualifying for the increased stake. The deal remains subject to Greenland government approval, with closing expected in October or November 2025.European Lithium will retain its 7.5% interest in Tanbreez, alongside a 60% shareholding in Critical Metals worth about $408 million at current prices. “This significant milestone agreement with Mr. Greg Barnes and Rimbal positions us to be laser focused on bringing this world-class asset into production,” Tony Sage, European Lithium’s executive chairman, said.“This significant milestone agreement with Mr. Greg Barnes and Rimbal positions us to be laser focused on bringing this world-class asset into production,” European Lithium executive chairman, Tony Sage, said.Game-changerThe Tanbreez project contains one of the world’s largest untapped heavy rare earth (HREE) deposits, with more than 27% HREE content and an estimated 4.7 billion tonnes of host rock. Barnes described the project as “a game-changer” for the rare earths supply chain in the West. China currently dominates the sector, accounting for about 60% of global rare earth production and 85% of processing capacity. In 2023, its production totalled 240,000 tonnes, nearly six times that of the United States.Critical Metals’ March preliminary economic assessment valued Tanbreez at a pre-tax net present value of $3.04 billion, with an internal rate of return of 180%.The deal comes as the UK, EU allies and Greenland are reportedly exploring a critical minerals partnership. Greenland’s foreign minister has signalled interest in expanding EU ties, highlighting the island’s mineral wealth as a key area for cooperation.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com