CRML Executes Term-Sheet for 50/50 Joint Venture With EU and NATO Member, Romania, Creating a Fully Integrated Mine-to-Processing Supply Chain for Long-Term Security for the European Manufacturing & National Security Sectors

Core Viewpoint - Critical Metals Corp. has announced a 50%-50% joint venture with Romania's state-owned Fabrica de Prelucrare a Concentratelor de Uraniu S.R.L. to develop a rare earth processing facility, aiming to create a secure supply chain for critical minerals in Europe and reduce reliance on China [1][4][5]. Joint Venture Details - The term sheet grants CRML long-term offtake rights for 50% of the Tanbreez concentrate production and outlines the development of a state-of-the-art processing facility in Romania [2][4]. - The joint venture will transform high-grade Tanbreez concentrate into rare earth metals and advanced materials for use within the EU, enhancing national security and advanced manufacturing capabilities [4][12]. Strategic Importance - The JV aims to establish a Europe-centric supply chain, reducing reliance on China, which currently controls over 80% of global rare earth processing [5][8]. - The facility will produce aerospace and military-grade magnets, contributing to defense and high-tech manufacturing [8][14]. Financial Aspects - CRML will not issue debt or equity for the joint venture and will retain a 50% interest on a carried interest basis, with no capital requirements for building the facility [8]. - The joint venture is expected to secure a significant portion of the Tanbreez rare earth concentrate under long-term offtake agreements, totaling 75% committed to allied nations [8][9]. Government Support - The Romanian government is applying for a €3.5 billion package to support the supply of rare earth metals to the EU, highlighting the strategic importance of this initiative [9][10]. - Romania is positioning itself as a key contributor to Europe's industrial and security architecture, enhancing its role in the Euro-Atlantic community [10][11]. Future Developments - The joint venture is aligned with Romania's 10-year development strategy for FPCU, focusing on technological modernization and integration into European value chains [14]. - CRML is investigating process improvements to increase the grade of concentrate, which will enhance the value of the product and improve refinery output [16][17].