Critical Metals Corp. (Nasdaq:CRML) announced that they have signed a letter of intent for an offtake agreement with Ucore Rare Metals Inc. The terms of the agreement state that Critical Metals Corp will supply up to 10,000mt of rare earth concentrate annually to Ucore – this represents 10% of the Tanbreez Project’s initial projected production figures.
After hydro-metallurgical processing, the rare earth concentrate will be used as feedstock for Ucore’s processing facilities in Alexandria, Louisiana, and in Kingston, Ontario, Canada. It is important to note that the Louisiana facility has received support and funding from both state government and the US Department of Defense, indicating the strategic importance of the industry to the US economy.
Tony Sage, CEO and Executive Chairman of Critical Metals Corp commented, “This development further validates the opportunities ahead for Critical Metals Corp and the strength of our world-class asset in Southern Greenland. Securing this offtake provides Critical Metals Corp both with our first buyer and the flexibility to supply other US based rare earth facilities in the future, given the immense size of our Tanbreez deposit. We look forward to teaming up with Ucore and their exceptional team to support the development of a robust supply chain in America that isn’t reliant on China.”
Pat Ryan, Chairman and CEO of Ucore also noted, “Critical Metals Corp’s Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains, which are essential for our processing facility in Louisiana, and our downstream partners. Both Critical Metals Corp and Ucore share a vision to lessen China’s grip of the rare earth ecosystem in the West, and we look forward to our partnership, positioning us both to meet the growing demand for rare earths while addressing national security challenges.”
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