Critical Metals begins drilling to expand rare earth resource in Greenland

Published 15/07/2025, 13:38
Critical Metals begins drilling to expand rare earth resource in Greenland

NEW YORK - Critical Metals Corp. (NASDAQ:CRML), a $309 million market cap mining company whose shares have declined over 71% in the past year, has commenced a 2,000-meter resource diamond drilling program at its Tanbreez Rare Earth Project in Greenland, according to a press release issued Tuesday. According to InvestingPro data, the stock currently trades at $2.98, significantly below its 52-week high of $11.13.

The program aims to increase the size of the current mineral resource estimate at the Fjord Eudialyte Deposit, which currently stands at 8.76 million tonnes in indicated resources and 13.8 million tonnes in inferred resources.

The first drill hole has reached approximately 60 meters in depth, showing medium-grained eudialyte with 30-40% composition in the mineralized zone. The resource drilling will target further extension to the east of the existing deposit by approximately 700 meters and 650 meters along strike.

Critical Metals stated that its exploration and definitive feasibility study teams are now on site conducting detailed fieldwork. The company expects to deliver final reports by the fourth quarter of 2025, with commercial production anticipated in 2026.

The drilling program is being conducted by the company’s Greenland drilling contractor, 60 North Greenland, along with rare earth geologists.

CEO Tony Sage said the program is "an important investment and step in our efforts to bring this rare earth asset into production" to meet growing demand in the United States and Western markets.

The Tanbreez project is described as one of the world’s largest rare earth deposits, located in Southern Greenland with year-round direct shipping access via deep water fjords.

Critical Metals also holds the Wolfsberg Lithium Project in Austria, which the company describes as the first fully permitted lithium mine in Europe.

In other recent news, Critical Metals Corp has received a Letter of Interest from the Export-Import Bank of the United States (EXIM) for a $120 million funding package for its Tanbreez rare earth project in Greenland. This funding is expected to cover pre-production activities and initial mining operations, with the project requiring a total of $290 million to reach initial commercial production. Additionally, the company has successfully raised $2 million through the exercise of outstanding warrants, which will be used to advance its mineral projects in Greenland and Europe. In a strategic move, Critical Metals Corp has also reshuffled its executive team, appointing Sergey Savchenko as Chief Financial Officer and George Karageorge as Chief Technical Officer, among others. The company has secured a binding lockup agreement with majority shareholders, European Lithium Limited and Rimbal, locking up their shares for 180 days. Critical Metals Corp has issued 5 million shares to Rimbal as part of the acquisition terms for the Tanbreez project. The company plans to invest $10 million in exploration at Tanbreez by the end of 2025, with an option to increase its ownership stake to 92.5%.

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