Reviewed by Lexie CornerJul 24 2024
A leading mining development company, Critical Metals Corp., announced that it has completed Stage 1 of its recently announced plan to purchase a controlling interest in the Tanbreez Greenland Rare Earth Mine from Rimbal Pty Ltd., a business controlled by geologist Gregory Barnes. The company is focused on critical metals and minerals and produces strategic products necessary for electrification and next-generation technologies for Europe and its Western world partners.
Tanbreez Mining Greenland A/S, a 36.45 % stake in Tanbreez, was given to Rimbal by Critical Metals Corp in return for 8.4 million CRML shares. With this deal, Critical Metals Corp.’s total interest in Tanbreez now stands at 42 %, building on its previously disclosed initial acquisition of a 5.55 % holding in Tanbreez in return for a $5.0 million investment in Rimbal.
The successful completion of Stage 1 reflects another pivotal milestone in our strategic acquisition of Tanbreez. Tanbreez is a game-changing rare earth asset for the West, an assessment supported by both our due diligence, including our visit to the project last week, as well as third-party evaluations. By acquiring Tanbreez, we are taking a key step towards positioning Critical Metals Corp as a reliable and long-term strategic supplier of both light and heavy rare earth elements to meet the escalating demand for these materials for technology and defense applications in the Western world.
Tony Sage, Chief Executive Officer and Chairman, Critical Metals Corp
The deal, which is structured as a two-stage issue of Critical Metals Corp ordinary shares, includes dependent milestones such as particular exploratory spending goals to be met by Critical Metals Corp within a certain time frame.
If Critical Metals Corp invests $10 million in Tanbreez exploration expenses during the following two years, it will be able to grow its holding in Tanbreez to 92.5 % by issuing additional ordinary shares to Rimbal worth $116 million at that time.
The Stage 2 stake in Tanbreez is subject to other customary closing conditions, including required governmental approvals from the Greenland government. European Lithium Ltd., Critical Metals Corp’s largest stakeholder, will maintain a 7.5 % stake in Tanbreez.
Critical Metals Corp has completed due diligence on the asset, which was monitored by its Audit Committee, which is made up of independent members of the board of directors, and the S-K 1300 conversion is currently ongoing. Since acquiring the asset, Tanbreez has executed 414 drill holes and more than 366,000 assays, resulting in a comprehensive database on the deposit’s geology, geochemistry, and rare earth element distribution.
Tanbreez’s substantial bulk testing, which totaled about 709 tons, highlights the asset’s key significant magnitude and the depth of the work already accomplished.
Gregory Barnes and his Greenland-based team are anticipated to stay actively committed and engaged with Tanbreez, ensuring the project benefits from their local knowledge and in-depth understanding of the assets.
Tanbreez management has evaluated the resource at 4.7 billion tons, including 28.2 million tons of total rare earth oxides. Heavy rare earth elements account for more than 25 % of the resource, a significant differentiator for Tanbreez.