US Government in talks to buy stake in Critical Metals

Core Insights - The US Government is in discussions to acquire a stake in Critical Metals Corporation to enhance control over critical minerals, particularly focusing on the Tanbreez project in southern Greenland [1][3] - Critical Metals has amended its agreement with Rimbal to increase its ownership in the Tanbreez project from 42% to 92.5% by issuing approximately 14.5 million ordinary shares [2][3] - The transaction is pending approval from the Greenland Government, and European Lithium will maintain a 7.5% minority stake in the project [3] Financial Details - The amended agreement specifies a fixed issuance of 14.5 million ordinary shares at a price of $8 per share, with the original agreement valued at $116 million [2][3] - Critical Metals has announced a securities purchase agreement to raise $35 million through a private investment in public equity transaction to support the development of the 4.7-billion-tonne rare earth deposit at Tanbreez [4][5] Strategic Context - The US Government's interest aligns with recent efforts to secure stakes in companies that are key suppliers of critical minerals for the US market [3] - The current US government shutdown is not expected to impact negotiations as key personnel are classified as essential workers [4] - Critical Metals' CEO emphasized the growing need for heavy rare earths in the West, highlighting the strategic importance of the Tanbreez project [5][6]