Critical Metals Corp Completes Stage 1 of the Tanbreez Acquisition, One of the World’s Largest Rare Earth Deposits

Critical Metals Corp Board of Directors Concludes Due Diligence on Tanbreez Acquisition; Critical Metals Corp Issues 8.4 Million Ordinary Shares to Acquire 36.45% of Outstanding Shares of Tanbreez Mining Greenland A/S

NEW YORK, July 23, 2024 (GLOBE NEWSWIRE) -- Critical Metals Corp (Nasdaq: CRML) (“Critical Metals Corp”), 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, today announced that it has completed Stage 1 of its recently announced plan to acquire a controlling interest in the Tanbreez Greenland Rare Earth Mine (the “Tanbreez Project”) from Rimbal Pty Ltd., a company controlled by geologist Gregory Barnes (“Rimbal”).

In exchange for a 36.45% interest in Tanbreez Mining Greenland A/S (“Tanbreez”), Critical Metals Corp issued 8.4 million CRML shares to Rimbal. This transaction builds on Critical Metals Corp’s previously announced initial acquisition of a 5.55% stake in Tanbreez in exchange for an investment of $5.0 million in Rimbal, increasing the Company’s total interest in Tanbreez to 42%.

“The successful completion of Stage 1 reflects another pivotal milestone in our strategic acquisition of Tanbreez,” said Tony Sage, CEO and Chairman of Critical Metals Corp. “Tanbreez is a game-changing rare earth asset for the West, an assessment supported by both our due diligence, including our visit to the project last week, as well as third-party evaluations. By acquiring Tanbreez, we are taking a key step towards positioning Critical Metals Corp as a reliable and long-term strategic supplier of both light and heavy rare earth elements to meet the escalating demand for these materials for technology and defense applications in the western world.”

The transaction, which has been structured as a two-stage issuance of Critical Metals Corp ordinary shares, incorporates contingent milestones, including specific exploration expenditure targets to be spent by Critical Metals Corp within a defined period of time. If Critical Metals Corp invests $10 million in exploration expense in Tanbreez within the next two years, Critical Metals Corp will have the option to increase its stake in Tanbreez to 92.5% by issuing additional ordinary shares to Rimbal with a value equal to $116 million at such time. The closing of the Stage 2 interest in Tanbreez is subject to other customary closing conditions, including additional governmental approvals by the Greenland government. European Lithium Ltd., Critical Metals Corp’s largest shareholder, will retain its 7.5% ownership in Tanbreez.