Critical Metals boosts Greenland rare earth stake to 92.5%

Critical Metals (Nasdaq: CRML) will lift its ownership in the Tanbreez rare earth project in southern Greenland to 92.5%, positioning itself to control one of the world’s largest rare earth deposits, major shareholder European Lithium (ASX: EUR) announced Thursday.

Under the revised agreement, Critical Metals will raise its stake in Tanbreez Mining Greenland AS from 42% to 92.5% by issuing 14.5 million shares to Rimbal Pty Ltd, a company controlled by project founder Gregory Barnes. The agreed price of $8 per share represents a 23% premium to Critical Metals’ last close of $6.49, valuing the transaction at $116 million.

Barnes waived an earlier requirement for Critical Metals to invest $10 million before qualifying for the increased stake. The deal remains subject to Greenland government approval, with closing expected in October or November 2025.

European Lithium will retain its 7.5% interest in Tanbreez, alongside a 60% shareholding in Critical Metals, worth about $408 million at current prices. “This significant milestone agreement with Mr. Greg Barnes and Rimbal positions us to be laser focused on bringing this world-class asset into production,” Tony Sage, European Lithium’s executive chairman, said.

“This significant milestone agreement with Mr. Greg Barnes and Rimbal positions us to be laser focused on bringing this world-class asset into production,” European Lithium executive chairman, Sage said.

Game-changer

The Tanbreez project contains one of the world’s largest untapped heavy rare earth (HREE) deposits, with more than 27% HREE content and an estimated 4.7 billion tonnes of host rock. Barnes described the project as “a game-changer” for the rare earths supply chain in the West. 

China currently dominates the sector, accounting for about 60% of global rare earth production and 85% of processing capacity. In 2023, its production totalled 240,000 tonnes, nearly six times that of the United States.

Critical Metals’ March preliminary economic assessment valued Tanbreez at a pre-tax net present value of $3.04 billion, with an internal rate of return of 180%.

The deal comes as the UK, EU allies and Greenland are reportedly exploring a critical minerals partnership. Greenland’s foreign minister has signalled interest in expanding EU ties, highlighting the island’s mineral wealth as a key area for cooperation.