Nasdaq-listed Critical Metals Corp (CRML) has just completed a preliminary feasibility assessment (PEA) of the Tanbreez rare earths (REE) project in southern Greenland and has priced the behemoth deposit at an eye-watering US$3 billion.
Tanbreez is one of the largest REE finds on earth, with a 4.7 billion tonne mineralised kakortokite orebody and CRML currently holds a 42.5% interest in a joint venture with privately-held Tanbreez Mining.
As per a binding agreement, CRML now needs to spend just another $10 million and it will gain an additional 50.5% equity interest, taking its ownership of the deposit up to 92.5%.
Based on a preliminary $US3 billion valuation, it seems like a no-brainer - especially with United States President Donald Trump's keen interest in buying the island.
Find out more: Trump and Greenland Part 2: The rush for rare earths
Australian roots
At the helm of the European-focused critical minerals explorer, ex-Perth Glory caretaker and ambitious resources speculator Tony Sage has put his chequered past with tax issues and other business operations behind him.
Last year, he took his junior exploration company European Lithium (ASX : EUR) and its Wolfsburg lithium project in Austria across the pond, spruiking its viability and giving it exposure to North American investment with a backdoor takeover of Sizzle Acquisition Corp.
Sage then rang the bell at the Nasdaq open in late February last year with his newly created CRML 70.4% controlled by his European Lithium, marking a pivotal step in the growth of the two critical minerals-focused companies.
CRML subsequently raised $24.5m for Wolfsberg and importantly Tanbreez; and has been working on support from the U.S. and European governments to accelerate exploration and development across the projects.
Tanbreez blows West
Now, a PEA of the behemoth Tanbreez rare earths project has shown some impressive metrics, such as an internal revenue rate of 180%.
It also got a large-scale heavy rare earths (HREE) component of 45 Mt @ 0.4% total rare earth oxides (TREO), including >27% high-value HREEs.
CRML is looking at a phased growth strategy with initial production of ~85,000 tonnes per annum (tpa) of rare earth oxides (REO) that is scalable to ~425,000 tpa with modular expansions.
The project is fully permitted through to 2050 and has signalled its potential to supply partners from both the European Union and the U.S.
“The release of the PEA for Tanbreez confirms the exceptional economic credentials of the project and fast tracks the development strategy for this game-changing rare earth deposit," CRML CEO and chair Sage said.
“With significant macroeconomic tailwinds and global policy initiatives, including the U.S.’s recent executive order to tap the Department of Defense to expand the production of rare earths, the Tanbreez Project is expected to play an essential role in supporting an integrated Western supply chain.
“As this PEA was only based on a fraction of the total resource potential at Tanbreez, Critical Metals Corp believes that more drilling can unlock enormous upside potential for Western stakeholders producing defense applications and other next-generation technologies, and can substantially increase the Tanbreez Project’s NPV.”
As CRML continues to progress its verification work and garner key findings from third-party reports, the Company expects to conduct additional drilling campaigns.
The explorer says the next step is a definitive feasibility study to confirm the deposit and solidify a development plan - pegged to be completed by the end of this year.
