Critical Metals surges on second US rare earth offtake deal for Tanbreez

Critical Metals Corp. (NASDAQ: CRML) has signed a letter of intent with US-based rare earth processor REalloys for a ten-year offtake agreement covering 15% of production from its Tanbreez rare earth project in southern Greenland.

This deal follows an August agreement with Ucore Rare Metals for 10% of Tanbreez’s output, bringing its total committed offtake to 25% of expected production.

REalloys — which operates a full-cycle rare earth processing and magnet manufacturing facility in Ohio and is preparing to list on the Nasdaq — also owns the Hoidas Lake rare earth project in Saskatchewan.

“The Tanbreez project presents a remarkable opportunity for REalloys, given its rich, long-life deposits of heavy rare earth elements — vital to the defense industrial base of the United States and our allied nations,” REalloys CEO Lipi Mainheim said in a statement. “REalloys and Critical Metals share a common commitment to reducing China’s dominance in the global rare earth supply chain.”

The companies plan to finalize definitive agreements following due diligence, negotiation of final commercial terms, and regulatory approvals.

Critical Metals’ Tanbreez project in Greenland is one of the world’s largest heavy and medium rare earth deposits. The New York-based company also owns the Wolfsberg lithium project in Austria, which it describes as Europe’s first fully permitted lithium mine.

Earlier this week, US officials denied reports that Washington was considering an equity investment in Critical Metals. Reuters had reported that the government held discussions with the company while negotiating a 5% stake purchase in Lithium Americas (TSX, NYSE: LAC), developer of the Thacker Pass lithium project in Nevada.

Following those reports and Critical Metals’ announcement of a new institutional investor, the company’s shares surged during after-hours trading and into Monday’s session.

By mid-afternoon Wednesday, Critical Metals’ stock had jumped by 17% on the Nasdaq, giving it a $1.2 billion market capitalization.