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Investing.com -- Critical Metals Corp (NASDAQ:CRML), a leading mining development company, has announced the results of an independent Preliminary Economic Assessment (PEA) on its Tanbreez Project in Southern Greenland on Monday. The PEA was conducted by Agricola Mining Consultants Pty Ltd and it reveals that 1% of the project’s 4.7 billion metric ton host rock has a Net Present Value (NPV) of approximately $3 billion.
The Tanbreez Project is one of the largest rare earth deposits in the world. The PEA demonstrates that the project is expected to have an Internal Rate of Return (IRR) of approximately 180%. The NPV was calculated based on an initial Mineral Resource Estimate (MRE) of 44.97 million metric tons of rare earth materials, which is about 1% of the host rock.
The project is strategically located on a coastal site with deep-water fjord access and close to existing infrastructure. It is expected to become a long-term supplier to US/EU critical mineral and defense sectors. The resource base of the project is robust, with 45 million metric tons at 0.40% Total (EPA:TTEF) Rare Earth Oxide (TREO) with 27% Heavy Rare Earth Elements (HREE).
The mining license for the project has been granted through to 2050. The project also has logistical advantages due to its fjord-side location with year-round deep-water access. It is one of the few Western-aligned HREE sources and could potentially become a supply partner for US/EU critical materials strategy.
Tony Sage, CEO and Chairman of Critical Metals Corp, stated that the PEA confirms the exceptional economic credentials of the project and fast tracks the development strategy for this game-changing rare earth deposit. He added that the project is expected to play an essential role in supporting an integrated Western supply chain.
"We’re obviously beyond pleased with this evaluation of a $3.0 billion NPV for Tanbreez in Greenland, especially given that it covers only a small portion of the 4.7 billion metric ton host rock," Sage told Investing.com exclusively following the news. "It’s a fantastic development that demonstrates the importance of this rare earth asset and the macroeconomic tailwinds in our favor. Given the importance of rare earths for national security in the West and other next-generation technologies, I strongly believe there is a marked disconnect between the market valuation and long-term fundamentals of Critical Metals Corp. I look forward to progressing our plans for this world-class asset."
Critical Metals Corp plans to invest $10 million in exploration expense in Tanbreez by the end of 2025. Once the investment is completed, the company will have the option to acquire an additional 50.5% equity interest, which would bring its aggregate ownership in Tanbreez to 92.5% at such time, by issuing additional ordinary shares to Tanbreez’s current majority owner having a value equal to $116 million at such time.
Critical Metals Corp is a leading mining development company focused on critical metals and minerals. Its flagship Project, Tanbreez, is one of the world’s largest rare earth deposits and is located in Southern Greenland. The company also holds the Wolfsberg Lithium Project located in Carinthia, Austria, which is the first fully permitted mine in Europe.