Ucore signs LOI with Critical Metals for rare earth feedstock

HALIFAX - Ucore Rare Metals Inc. (TSXV:UCU) (OTCQX:UURAF) has executed a non-binding Letter of Intent with Critical Metals Corp. (NASDAQ:CRML) to secure heavy rare earth element feedstock from the Tanbreez Project in southern Greenland, the company announced Tuesday. Critical Metals, currently valued at $605 million, has shown strong momentum with a 10.53% return over the past week, according to InvestingPro data.

The proposed arrangement outlines a 10-year supply agreement for rare earth materials that would feed Ucore’s Strategic Metals Complex in Alexandria, Louisiana, with smaller initial volumes processed at the company’s Commercial Demonstration Facility in Kingston, Ontario. While Critical Metals operates with moderate debt levels, InvestingPro analysis indicates the company’s overall financial health score is currently rated as WEAK, with challenges in short-term liquidity.

Under the terms, Critical Metals would deliver a mixed rare earth carbonate or oxide product beginning July 1, 2027, or upon commercial production, whichever comes later. The Louisiana facility has received support from both the U.S. Department of Defense and the State of Louisiana.

"Critical Metals Corp’s Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains," said Pat Ryan, Chairman and CEO of Ucore in the press release statement.

Tony Sage, CEO of Critical Metals Corp, noted that the partnership "has the potential to fill key gaps in the western rare earth supply chain."

The execution of a definitive agreement remains subject to due diligence, finalization of commercial terms, and necessary approvals. Specific product specifications and pricing details will be determined as part of the final agreement.

The companies indicated the partnership aims to develop rare earth processing capabilities outside of China’s dominant position in the global supply chain. For deeper insights into Critical Metals’ financial metrics and growth potential, InvestingPro subscribers have access to over 30 additional analysis indicators and real-time updates.

In other recent news, Critical Metals Corp. has received a Letter of Interest from the Export-Import Bank of the United States for a $120 million non-dilutive funding package. This funding is intended to support pre-production activities and initial mining operations at the Tanbreez rare earth project in Greenland. Additionally, the company has started a 2,000-meter resource diamond drilling program at the Tanbreez Project, aiming to expand the current mineral resource estimate at the Fjord Eudialyte Deposit. In a move to strengthen its operations, Critical Metals appointed Mathias Barfod as President of Greenland Operations, a newly created role to support the scale-up of the Tanbreez Project. Furthermore, the company has formed a new Advisory Board, including experts like Christian Aramayo and Mathew August, to guide its critical minerals projects. Retired U.S. Air Force Four-Star General Tim Ray has also joined this board, bringing significant leadership experience. These developments reflect Critical Metals’ strategic efforts to advance its projects in Greenland.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.