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Critical Metals shares soar after Reuters report says Washington eyeing stake
Yahoo Financeยท 2025-10-06 12:52
Core Insights - Shares of Critical Metals surged nearly 53% in premarket trading following reports of U.S. government talks to buy a stake in the miner, aimed at securing rare earth supply [1] - A successful deal would provide the U.S. government with a direct interest in the largest rare earths project in Greenland, enhancing supply chain independence from China [2] - The U.S. government is actively pursuing critical minerals to reduce reliance on China, including investments in both domestic and overseas projects [3] Company Developments - Critical Metals acquired Greenland's Tanbreez rare earth deposit for $5 million in cash and $211 million in stock last year [3] - The company applied for a $50 million Defense Production Act grant, which may be converted into an equity stake of approximately 8% [4] - Critical Metals announced a $35 million funding agreement with an unnamed institutional investor for Tanbreez's development [4] - The company's shares have increased by about 17% this year, valuing it at roughly $787 million [4] Financial Reporting - The company restated financial statements for the six months ended December 31, 2024, and 2023, advising investors against relying on earlier reports [5]