European Lithium backs Critical Metals’ major stake in Greenland’s Tanbreez mine

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By Colin Hay - 
European Lithium ASX EUR Critical Minerals Tanbreez Greenland

European Lithium (ASX: EUR) has welcomed Critical Metals’ move to acquire a controlling interest in the world-class Tanbreez Greenland rare earth mine.

The company currently holds just over 83.03% of the ordinary shares in Critical Metals and owns a 7.5% direct interest in the Tanbreez project.

Under the new binding heads of agreement, Critical Metals will acquire a 92.5% interest in the Tanbreez project from Rimbal, a company controlled by geologist Gregory Barnes.

European Lithium will retain its 7.5% ownership in the project.

Pre-eminent supplier

Critical Metals’ chief executive officer and chair Tony Sage said Tanbreez is a game-changing rare earth asset.

“This is a key step towards positioning Critical Metals as the pre-eminent critical minerals supplier with a diversified, multi-asset portfolio that spans multiple geographies,” Mr Sage said.

The unique Tanbreez project is a permitted, globally significant asset that is being developed to target the long-term supply of rare earth elements (REEs) and critical minerals for North America and Europe.

High HREE content

Tanbreez is expected to possess more than 27% heavy rare earth elements (HREE), which carry a much higher value than light REE.

The outcropping ore body known as Kakortokite is estimated to contain 4.7 billion tonnes of ore.

It covers an area of 8 kilometres by 5km and is estimated to be approximately 400m thick.

The asset is located in Southern Greenland, in close proximity to airport and shoreline transportation options with established infrastructure in place for year-round direct shipping of end products.

BMW deal paying off

The Tanbreez move comes hot on the heels of Critical Metals’ wholly-owned subsidiary ECM Lithium receiving approximately $22.7 million in funds from motoring giant BMW.

The transfer relates to the offtake of battery-grade lithium hydroxide (LiOH) from the Wolfsberg lithium project in Austria, to be offset against LiOH delivered to BMW.