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NEW YORK - Critical Metals Corp (NASDAQ:CRML) announced Monday it has amended its agreement to acquire the Tanbreez Greenland Rare Earth Mine from Rimbal Pty Ltd, revising the terms for increasing its ownership stake from 42% to 92.5%.
Under the new terms, Critical Metals will issue approximately 14.5 million ordinary shares to Rimbal, a company controlled by project founder Gregory Barnes. This replaces the original agreement’s unspecified number of shares valued at $116 million. The amended agreement implies a value of $8.00 per Critical Metals share.
The transaction remains subject to Greenland governmental approval. Notably, Rimbal has waived the previous condition requiring Critical Metals to invest an additional $10 million before qualifying for the increased ownership. European Lithium will maintain its 7.5% minority interest in the project.
"This significant milestone agreement with Mr. Greg Barnes and Rimbal positions us to be laser focused on bringing this world-class asset into production," said Tony Sage, CEO and Executive Chairman of Critical Metals Corp.
The Tanbreez Project is described in the company’s press release as containing 4.7 billion metric tons of resources with high-grade heavy rare-earth elements and gallium. Barnes will continue as a technical advisor to the project.
Critical Metals Corp focuses on mining development for critical metals and minerals essential to electrification and next-generation technologies. Besides Tanbreez, the company also holds the Wolfsberg Lithium Project in Austria, which it describes as the first fully permitted lithium mine in Europe.
The information in this article is based on a company press release statement.
In other recent news, Critical Metals Corp. reported new assay results from its 2024 diamond drill hole program at the Fjord Deposit in Greenland, revealing consistent rare earth mineralization. The drill holes showed Total Rare Earth Oxide grades between 0.40% and 0.42%, with significant zirconium oxide and gallium oxide readings. Additionally, Ucore Rare Metals Inc. signed a non-binding Letter of Intent with Critical Metals to secure a 10-year supply of heavy rare earth element feedstock from the Tanbreez Project. This arrangement is intended to supply Ucore’s facilities in Louisiana and Ontario.
Clear Street initiated coverage on Critical Metals with a Buy rating and a price target of $12.00, based on future EBITDA estimates. In corporate developments, Mathias Barfod was appointed as President of Greenland Operations to support the Tanbreez Project’s scale-up. Furthermore, retired U.S. Air Force Four-Star General Tim Ray joined the company’s newly formed Advisory Board to provide guidance on mineral project development. These developments highlight Critical Metals’ ongoing efforts to advance its projects and strengthen its leadership team.
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