Critical Metals Corp. Secures $120M LOI from EXIM for Its Tanbreez Rare Earth Project, Greenland
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Critical Metals Corp. said it has received a letter of interest from the Export-Import Bank of the United States (EXIM), for a total non-dilutive funding package of $120 million. This funding package from the U.S’s official export credit agency is expected to be used to develop the Tanbreez Project, one of the world’s largest rare earth deposits located in Greenland.
Based on preliminary information submitted by Critical Metals Corp. for the Tanbreez Project, EXIM will consider financing up to $120 million of the project’s costs with a repayment term of 15 years under EXIM’s new Supply Chain Resiliency Initiative (SCRI). The amount of funding is expected to be sufficient for Critical Metals Corp. to complete necessary technical and economic studies, pre-production activities, and begin mining at the Tanbreez Project.
The company expects that the Tanbreez Project will require $290 million in capital expenditure to bring it to initial commercial production. In its initial commercial production phase, the company expects that the Tanbreez Project will be capable of producing up to 85,000 metric tons of rare earth material annually.
“This is a tremendous milestone for Critical Metals Corp. which highlights to the rare earths supply chain, Western Governments and investors that Tanbreez is a world-class asset that will provide mission-critical rare earth metals to counter China’s continued dominance,” said Tony Sage, CEO and chairman of Critical Metals Corp.
“The company appreciates the support of EXIM Bank and the U.S. Federal government as well as our Greenland partners in this major achievement. We are now razor focused to put Tanbreez into production as soon as possible,” added Sage.
In addition to continuing to progress its verification, de-risk the asset, and prepare for additional pre-production activities, including additional drilling, Critical Metals Corp. expects to complete a definitive feasibility study by the end of 2025, which is expected to include important data, such as volumes and timeline estimates. In addition, the company expects to invest $10 million in exploration expenses in Tanbreez in 2025 to have the option to acquire an additional 50.5 percent of the asset, bringing its total ownership to 92.5 percent.
The proposed funding package may be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization, which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries and/or to advance the comparative leadership of the United States in transformational export areas.
The SCRI program is under The China and Transformational Exports Program (CTEP), which is an EXIM program established to help U.S. exporters compete with Chinese companies and ensure U.S. leadership in emerging technologies. Through CTEP, U.S. companies can benefit from reduced fees, extended repayment terms, and other tailored policies.
Critical Metals Corp. is a leading mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners. Its flagship project, Tanbreez, is one of the world’s largest rare earth deposits and is located in Southern Greenland. The deposit is expected to have access to key transportation outlets as the area features year-round direct shipping access via deep water fjords that lead directly to the North Atlantic Ocean. Another key asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable asset in an expanding geostrategic critical metals portfolio.
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