European Lithium (ASX:EUR) has announced that Critical Metals Corp (NASDAQ:CRML) has amended an agreement to acquire full controlling interest in the Tanbreez Rare Earths Project in southern Greenland.
Under the amended deal, Critical Metals now has the right to increase its ownership stake in Tanbreez from 42% to 92.5% upon issuing 14.5 million shares to privately held Rimbal – a company controlled by geologist and project founder Gregory Barnes.
The shares will have an implied value of US$8 per share, where they are to be issued to Rimbal at closing. Rimbal has also agreed to waive the previous condition that required Critical Metals to invest US$10 million ($15.14 million) before qualifying for the increased ownership stake.
European Lithium will continue to maintain its 7.5% interest in the project.
Executive Chairman Tony Sage this deal positions the company to become laser-focused on bringing the asset into production.
The Tanbreez Project is notable for its high concentration of heavy rare earth oxides, which are critical for high-tech applications, clean energy, and defence industries. The project has an estimate of 4.7 billion tonnes of rock containing total rare earth oxide-bearing mineralisation.
European Lithium is an explorer and developer focused on lithium, rare earths, precious and base metals, which holds 60% of Critical Metals’ shares.
Critical Metals Corp is a mining developer focused on critical metals and producing essential materials for electrification and next generation technologies.
Write to Aaliyah Rogan at Mining.com.au
Images: Critical Metals Corp
