European Lithium (ASX:EUR) has announced that Critical Metals Corp (NASDAQ:CRML) has signed a letter of intent for an offtake agreement with Ucore Rare Metals (TSX-V:UCU), for the Tranbreez Project in Greenland.
Under the proposed terms of the multi-year deal, Critical Metals will supply up to 10,000 tonnes per year of rare earth concentrate from Tanbreez representing 10% of the project’s initial projected production.
Following processing, the concentrate will be used as feedstock for Ucore’s rare earths processing facility in Louisiana, as well as its facility in Kingston, Ontario.
The Louisiana facility, which received support and funding from the state government and US Department of Defense, will produce high-purity rare earth oxides from mixed rare earth carbonates or oxides.
Executive Chairman Tony Sage says this development further validates the opportunities ahead for Critical Metals and the strength of the asset in southern Greenland.
“Securing this offtake provides Critical Metals both with our first buyer and the flexibility to supply other US-based rare earth facilities in the future, given the immense size of our Tanbreez deposit,” Sage says.
Ucore’s CEO Pat Ryan says the Tanbreez project offers tremendous opportunities for the company given the concentration of heavy rare earths it contains, which is essential for the processing facility and downstream partners.
“Both Critical Metals Corp and Ucore share a vision to lessen China’s group of the rare earth ecosystem in the west and we look forward to our partnership,” Ryan says.
Ucore Rare Metals is a rare earths and critical metals-focused company that aims to become an advanced technology company.
In June 2024, Critical Metals entered into a heads of agreement to acquire up to 92.5% in Tanbreez. European Lithium and Critical Metals both hold a combined interest of 49.5% in the project.
European Lithium is Critical Metals’ largest shareholder and now considered Tanbreez to be material.
Write to Aaliyah Rogan at Mining.com.au
Images: Critical Metals Corp
