Critical Metals Issues 14.5 Million Shares to Boost Tanbreez Ownership to 92.5%
Critical Metals Corp has amended its agreement to increase its ownership of the Tanbreez Rare Earths Project in Greenland to 92.5%, issuing 14.5 million shares to the project founder’s company. European Lithium retains a 7.5% stake as the project advances toward production.
- Critical Metals increases Tanbreez ownership from 42% to 92.5%
- 14.5 million shares issued to Rimbal Pty Ltd at a 23% premium
- European Lithium retains a 7.5% minority interest
- Transaction pending Greenland government approval, expected by November 2025
- Tanbreez project notable for high-grade heavy rare earths with low uranium and thorium
Strategic Ownership Shift in Greenland
Critical Metals Corp (NASDAQ – CRML) and European Lithium Ltd (ASX – EUR) have taken a significant step in the development of the Tanbreez Rare Earths Project in southern Greenland. The two companies have amended their agreement, allowing Critical Metals to increase its ownership stake from 42% to a commanding 92.5%. This move is facilitated through the issuance of 14.5 million ordinary shares to Rimbal Pty Ltd, a company controlled by Gregory Barnes, the project’s founder and a key geologist.
The share issuance is set at an implied value of US$8.00 per share, representing a notable 23% premium over the closing price of US$6.49 as of late September 2025. This firm pricing replaces the previous arrangement, which valued the consideration at US$116 million but left the exact number of shares unspecified. Additionally, Rimbal has waived the prior condition requiring Critical Metals to invest US$10 million before qualifying for the increased stake, streamlining the transaction.
Project Significance and Development Outlook
The Tanbreez Project stands out globally due to its vast deposit of rare earth elements, particularly heavy rare earth oxides (HREOs), which are critical for advanced technologies, clean energy, and defense applications. The deposit boasts an estimated 4.7 billion tonnes of host rock with approximately 27% HREO content, and importantly, it contains extremely low levels of uranium and thorium. This reduces environmental and regulatory hurdles that often complicate rare earth mining projects.
Currently in the feasibility study and pre-development phases, Tanbreez benefits from its strategic location near Qaqortoq, southern Greenland, with year-round access to deep-water fjords facilitating direct shipping to the North Atlantic. The project’s advancement is expected to accelerate under Critical Metals’ majority control, leveraging the expertise of Gregory Barnes and the technical team.
European Lithium’s Position and Market Implications
European Lithium will maintain a 7.5% minority interest in the project, preserving its exposure to this world-class asset while focusing on its broader portfolio, which includes lithium and other critical metals across Europe and Australia. The company currently holds approximately 60% of Critical Metals’ shares, valuing its investment at over US$400 million based on recent share prices.
The transaction remains subject to Greenland government approval, with completion anticipated in October or November 2025. This regulatory step is crucial, given the geopolitical and environmental sensitivities surrounding rare earth mining in the Arctic region.
With Critical Metals poised to consolidate control, the Tanbreez Project is positioned to become a cornerstone supplier of critical minerals essential for the clean energy transition and high-tech industries in the Western world. The move also underscores the growing strategic importance of Greenland’s mineral resources amid global supply chain realignments.
Bottom Line?
As Critical Metals moves to majority control, all eyes will be on Greenland’s regulatory green light and the project’s path to production.
Questions in the middle?
- Will Greenland’s government approve the ownership increase without delay?
- How will the share issuance impact Critical Metals’ market capitalization and shareholder dynamics?
- What are the next technical milestones for Tanbreez’s feasibility and resource definition?
