Critical Metals (NASDAQ:CRML) +75.2% post-market Friday following a Reuters report that Trump administration officials have discussed taking a stake in the company whose flagship project, the Tanbreez mine in Greenland, is one of the world's largest rare earth deposits.
Critical Metals (NASDAQ:CRML), which agreed to buy the Tanbreez deposit last year for $5 million in cash and $211 million in stock, applied in June for a $50 million grant through the Defense Production Act, but the Trump administration has begun discussions with the company about converting the grant into an equity stake, according to the report.
If the deal goes through, a $50 million conversion would mean a ~8% stake in the company, although negotiations are not final and the deal could collapse.
The equity stake reportedly would be separate from a $120 million loan under consideration by the U.S. Export-Import Bank to help the company develop Tanbreez, which is expected to cost $290 million to bring into commercial production.
Critical Metals (CRML) said earlier this week it amended its acquisition agreement with Rimbal Pty Ltd. allowing it to increase its ownership stake in Tanbreez from 42% to 92.5% in exchange for the issuance of ~14.5 million common shares of the company.
The administration recently has taken equity stakes in Lithium Americas and MP Materials, highlighting Trump's desire for the U.S. to benefit from growing production of rare earth minerals.
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