The US Government is reportedly in talks to acquire a stake in Critical Metals Corporation as part of an initiative to enhance its control over critical minerals.
This potential deal would provide Washington with a direct interest in the Tanbreez project in southern Greenland, reported Reuters, citing sources.
The news comes after Critical Metals announced last month an amended agreement with Rimbal to increase its ownership in the Tanbreez project from 42% to 92.5%.
As per this amended agreement, Critical Metals can increase its ownership stake in the project upon the issuance of around 14.5 million ordinary shares to Rimbal.
The original agreement stipulated that the consideration for this increase in ownership was an unspecified number of shares of Critical Metals carrying a value of $116m defined at the time of the increase.
The latest agreement amends the original to specify a fixed issuance of 14.5 million ordinary shares to Rimbal at closing, implying a price of $8 per Critical Metals ordinary share.
The transaction is pending approval from the Greenland Government.
European Lithium will retain its 7.5% minority stake in the Tanbreez project.
The US Government’s interest in this deal aligns with recent efforts to secure stakes in companies considered key suppliers of critical minerals for the US market, reported Reuters.
The present government shutdown in the US is not expected to affect the negotiations as key personnel involved are classified as essential workers.
The Tanbreez project is a permitted asset in southern Greenland near the town of Qaqortoq.
Meanwhile, Critical Metals has today announced the signing of a securities purchase agreement with an institutional investor to raise $35m through a private investment in public equity transaction.
The company intends to use the funds to support the development of the 4.7-billion-tonne rare earth deposit at Tanbreez.
Critical Metals CEO and executive chairman Tony Sage said: “This financing from a fundamental institutional investor further validates the opportunities ahead for Tanbreez and Critical Metals Corp and underscores the growing need for heavy rare earths in the West.
“We look forward to welcoming this new institutional investor as we advance our commercialisation road map for Tanbreez and bring this game-changing rare earth asset closer to production.”
“US Government in talks to buy stake in Critical Metals” was originally created and published by Mining Technology, a GlobalData owned brand.
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