Critical Metals Corp. Completes Initial Investment for Tanbreez Acquisition, One of the Largest Rare Earth Deposits

Rhea-AI Summary

Critical Metals Corp. (Nasdaq: CRML) has completed an initial $5.0 million investment in Rimbal Pty for a 5.55% stake in Tanbreez, one of the largest rare earth deposits globally. This investment is part of their strategy to acquire Tanbreez and position themselves as a key supplier of rare earth elements for the technology and defense industries in the West. CEO Tony Sage highlighted the strategic importance of this acquisition in meeting the growing demand for these critical materials.

Positive

• Completion of a $5.0 million initial investment in Tanbreez.
• Acquisition of a 5.55% stake in one of the largest known rare earth deposits.
• Strategic positioning as a potential key supplier of rare earth elements to the technology and defense industries.
• De-risking of the transaction with the completion of this investment.

Negative

• Only a minor 5.55% stake acquired with the initial investment.
• The full acquisition plan details and timeline are still not disclosed.
• Potential dilution of shareholder value due to future funding requirements.
• Dependence on further investments and successful acquisition completion.

Financial Analyst

The initial investment of $5.0 million in exchange for 5.55% ownership of Tanbreez signifies an important step for Critical Metals Corp. This positions the company strategically in the rare earth elements market, which is important for technology and defense industries. The financial commitment enhances Critical Metals Corp's asset portfolio, potentially increasing its market valuation in the long term. However, the investment does highlight a considerable risk as the full acquisition process is still underway. Investors should watch for subsequent funding rounds and due diligence outcomes, which could impact future financial stability and stock performance. The move aligns with broader industry trends where securing rare earth resources locates companies at an advantage, especially in light of geopolitical tensions affecting supply chains.

Market Research Analyst

The rare earth elements market is pivotal for modern technology and defense applications, with increasing demand projected globally. Tanbreez's acquisition by Critical Metals Corp symbolizes a strategic shift, aiming to secure critical resources. The transaction is notably significant due to the geopolitical implications, as Western countries strive for independence from dominant suppliers like China. For retail investors, this means a potential uptick in share value as the company fortifies its market position and addresses critical supply chain needs. This move could also stimulate investor interest amidst growing concerns over resource security. However, the actual benefits would depend on the company's ability to scale extraction and refine these materials efficiently.

Geology Expert

Understanding the geological implications, Tanbreez stands out as one of the largest known rare earth deposits. Rare earth elements, including both light and heavy variants, are important for numerous high-tech and defense applications, ranging from advanced electronics to missile guidance systems. The ownership transfer and subsequent investments should improve extraction and processing capabilities, which are technically challenging and capital intensive. Investors should be aware of the potential for high returns, tempered by the inherent risks of mining operations, including environmental regulations and technical obstacles. Successfully navigating these challenges would greatly benefit Critical Metals Corp by making it a key player in the rare earth market.

Advances plan to acquire critical asset for technology and defense industries in the western world, further de-risking transaction

NEW YORK, June 18, 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 the initial investment as part of its recently announced plans to acquire Tanbreez, one of the world’s largest known rare earth assets. In exchange for 5.55% of Tanbreez, Critical Metals Corp has provided an initial investment of $5.0 million to Rimbal Pty Ltd., a company controlled by geologist Gregory Barnes (“Rimbal”), the current owner of the Tanbreez project.

“The completion of this investment is a key step for our plans to acquire Tanbreez, a foundational rare earth asset for the West,” said Tony Sage, CEO and Chairman of Critical Metals Corp. “By acquiring Tanbreez, Critical Metals Corp expects to be strategically positioned to become a reliable and sustainable supplier of both light and heavy rare earth elements to meet the growing demand of these materials from the technology and defense industries in western countries. With this development, the transaction is further de-risked.”

About Critical Metals Corp.

Critical Metals Corp (Nasdaq: CRML) is 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. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio.

For more information, please visit https://criticalmetalscorp.com/.

Cautionary Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, without limitation, statements regarding the financial position, financial performance, business strategy, expectations of our business and the plans and objectives of management for future operations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “designed to” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.

These forward-looking statements may include statements, among other things, relating to:

general economic conditions and conditions affecting the industries in which the Company operates;

expansion and other plans and opportunities, including expansion into other strategic assets; and

other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors discussed under the “Risk Factors” section in the Company’s Shell Company Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2024 and in the Company’s proxy statement/prospectus, dated December 27, 2023, as supplemented by that proxy statement/prospectus supplement No. 1, dated February 15, 2024, forming a part of Registration Statement on Form F-4 (File No. 333-268970), as amended, which was declared effective on December 27, 2023. These forward-looking statements are based on information available as of the date of this news release, and expectations, forecasts and assumptions as of that date, involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Critical Metals Corp.

Investor Relations: ir@criticalmetalscorp.com

Media: pr@criticalmetalscorp.com

FAQ

What is the significance of Critical Metals Corp's $5 million investment?

The $5 million investment secures a 5.55% stake in Tanbreez, a major rare earth deposit, positioning the company strategically in the rare earth supply chain for technology and defense industries.

How much of Tanbreez did Critical Metals Corp acquire with this investment?

Critical Metals Corp acquired a 5.55% stake in Tanbreez with an initial investment of $5.0 million.

Why is the acquisition of Tanbreez important for Critical Metals Corp?

The acquisition will position Critical Metals Corp as a key supplier of rare earth elements, important for the technology and defense sectors in western countries.

What are the potential risks associated with Critical Metals Corp's investment in Tanbreez?

Risks include the minor stake of only 5.55%, unclear acquisition timeline, potential shareholder dilution, and reliance on future investments.

What industries will benefit from Critical Metals Corp's acquisition of Tanbreez?

The technology and defense industries in the western world will benefit from a reliable supply of rare earth elements.