Latest news with #CriticalMetals
News.com.au
4 days ago
- Business
- News.com.au
Break it Down: EUR welcomes US$120m LOI for Tanbreez rare earth development
Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully looks at the latest from European Lithium (ASX:EUR),who is the largest shareholder of Critical Metals Corp. Critical Metals' Tanbreez project boasts one of the largest rare earth deposits in the world, and the company has just been the recipient of a US$120 letter of interest from the Export-Import Bank of the United States to assist in its development. Tune in to hear all about it. While European Lithium is a Stockhead advertiser, it did not sponsor this content. Originally published as Break it Down: EUR welcomes US$120m LOI for Tanbreez rare earth development
Yahoo
5 days ago
- Business
- Yahoo
EXIM Bank considers $120m loan for rare earths mine in Greenland
Critical Metals has received a letter of interest (LoI) from the US Export-Import Bank (EXIM) for financing the company's Tanbreez rare earths mine in Greenland with a loan of up to $120m, according to a Reuters report, citing sources. This move could mark the Trump administration's first overseas investment in a mining project and potentially reduce US reliance on China for critical minerals. Amid trade tensions, Beijing imposed export restrictions on rare earths, intensifying the global search for new sources. Critical Metals was informed that it meets the initial criteria to apply for the loan, which offers a 15-year repayment term. According to the report, the loan is contingent on the project being well-funded with equity from strategic investors. The Tanbreez mine, with an estimated cost of $290m, is expected to begin initial production by 2026, eventually yielding 85,000 tonnes per annum of rare earths concentrate. Critical Metals CEO Tony Sage was quoted as saying: 'This funding package is expected to unlock significant value for our project and our stakeholders.' The loan would support technical work and reaching initial production stages. EXIM representatives could not be reached for immediate comment. Washington has previously shown support for Greenland's mining sector, with Biden administration officials lobbying Tanbreez Mining to avoid a sale to a Chinese developer. The mining sector in Greenland has faced challenges including limited investor interest and environmental concerns. Only two small mines are currently operational in the region. Greenland's Minister for Business and Mineral Resources, Naaja Nathanielsen, has highlighted the need for external investment to bolster the country's mining and tourism sectors, urging Europe and the US to consider investment opportunities. Critical Metals still needs to develop material processing facilities within the US, a goal bolstered by the potential EXIM loan. The company previously sought funding from the US Department of Defense for a processing facility, but the process stalled. To meet additional funding requirements, Critical Metals is exploring options such as offtake agreements and funding from other US agencies. The company has engaged in supply discussions with Lockheed Martin and other defence contractors. EXIM has also expressed interest in financing Perpetua Resources' mine in Idaho. "EXIM Bank considers $120m loan for rare earths mine in Greenland" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
6 days ago
- Business
- New York Post
US Export-Import Bank considering $120M loan for Greenland rare earths project
Critical Metals Corp. has received a letter of interest from the U.S. Export-Import Bank for a loan worth up to $120 million to fund the company's Tanbreez rare earths mine in Greenland, in what would be the Trump administration's first overseas investment in a mining project. The loan, if approved, would boost U.S. access to minerals increasingly at the center of global economic trade and help offset the country's reliance on market leader China. It also comes after President Trump openly mused earlier this year about acquiring the Danish island territory, an overture that has been repeatedly rejected. In a letter dated June 12 and reviewed by Reuters, New York-based Critical Metals has met initial requirements to apply for the $120 million EXIM loan and, if approved, would have a 15-year repayment term, longer than the company likely would have with private financing. 4 A loan by the U.S. Export-Import Bank to fund Critical Minerals Corp.'s Tanbreez rare earths mine in Greenland would be the Trump administration's first overseas investment in a mining project. Getty Images The project would have to be 'well-capitalized with sufficient equity from strategic investors' to receive the loan, the letter said. EXIM, which acts as the U.S. government's export credit agency, said in the letter that Critical Metals qualifies for a loan program designed to support companies that compete with China. The Tanbreez project is expected to cost $290 million and the EXIM funds would be used to fund technical work and get the mine to initial production by 2026. Once fully operational, the mine is expected to produce 85,000 metric tons per year of a rare earths concentrate and two minor metals. 'This funding package is expected to unlock significant value for our project and our stakeholders,' said Tony Sage, the company's CEO. Representatives for EXIM were not immediately available to comment. The move is the latest in a series of supportive actions by Washington toward the Tanbreez deposit and Greenland's mining sector. Reuters reported in January the Biden administration had successfully lobbied privately held Tanbreez Mining not to sell to a Chinese developer and instead sell to Critical Metals. Biden officials were visiting Nuuk as recently as last November trying to woo additional private investment in the island. Trump sent Vice President JD Vance to the island in March. 4 Vice President JD Vance in Greenland in March. via REUTERS The island's mining sector has developed slowly in recent years, hindered by limited investor interest, bureaucratic challenges and environmental concerns. Currently, only two small mines are in operation. Rare earths have strong magnetic properties that make them critical to high-tech industries ranging from electric vehicles to missile systems. Their necessity has given rise to intense competition as Western countries try to lessen their dependence on China's near-total control of their extraction and processing. Beijing in April put export restrictions on rare earths as part of its trade spat with Trump. The two countries earlier this month reached a truce, although Beijing's control of the sector has exacerbated the West's over-reliance and sparked a global hunt for fresh supplies. 4 President Trump has openly mused about acquiring the Greenland from Denmark, which Copenhagen has rejected. REUTERS Despite the loan potential, Critical Metals would still have to either build a processing facility or find an existing site with spare capacity. The company told Reuters that its goal is to process the material inside the U.S., a goal the EXIM loan would make more achievable. Last year, Critical Metals had applied for funding to develop a processing facility from the U.S. Department of Defense, but the review process stalled ahead of Trump's January inauguration. 4 Greenland's mining sector has developed slowly in recent years, slowed by limited investor interest, bureaucratic challenges and environmental concerns. It has only two mines in operation. Getty Images For the EXIM loan's additional funding requirements, Critical Metals said it is considering offtake agreements, royalty streams and funding from other U.S. governmental agencies. Critical Metals told Reuters earlier this year that it has held supply talks with defense contractor Lockheed Martin, among others. Critical Metals' 10th-largest investor is brokerage firm Cantor Fitzgerald, which was formerly led by Howard Lutnick before he joined Trump's cabinet as commerce secretary. Sage told Reuters in January he had never met or talked to Lutnick, but acknowledged Cantor's investment was a positive for his company. EXIM last year extended a letter of interest to Perpetua Resources for a loan worth up to $1.8 billion for its antimony and gold mine in Idaho.
Bloomberg
6 days ago
- Business
- Bloomberg
US Ex-Im Bank May Fund Greenland Rare Earths Mine, Reuters Says
The US Export-Import Bank is considering providing up to $120 million for a rare earths project by Critical Metals Corp. in Greenland, Reuters reported Sunday, citing a letter of interest.
Yahoo
6 days ago
- Business
- Yahoo
Exclusive-US Export-Import Bank considers $120 million loan for Greenland rare earths project
By Ernest Scheyder (Reuters) -Critical Metals Corp has received a letter of interest from the U.S. Export-Import Bank (EXIM) for a loan worth up to $120 million to fund the company's Tanbreez rare earths mine in Greenland, in what would be the Trump administration's first overseas investment in a mining project. The loan, if approved, would boost U.S. access to minerals increasingly at the center of global economic trade and help offset the country's reliance on market leader China. It also comes after President Donald Trump openly mused earlier this year about acquiring the Danish island territory, an overture that has been repeatedly rejected. In a letter dated June 12 and reviewed by Reuters, New York-based Critical Metals has met initial requirements to apply for the $120 million EXIM loan and, if approved, would have a 15-year repayment term, longer than the company likely would have with private financing. The project would have to be "well-capitalized with sufficient equity from strategic investors" to receive the loan, the letter said. EXIM, which acts as the U.S. government's export credit agency, said in the letter that Critical Metals qualifies for a loan program designed to support companies that compete with China. The Tanbreez project is expected to cost $290 million and the EXIM funds would be used to fund technical work and get the mine to initial production by 2026. Once fully operational, the mine is expected to produce 85,000 metric tons per year of a rare earths concentrate and two minor metals. "This funding package is expected to unlock significant value for our project and our stakeholders," said Tony Sage, the company's CEO. Representatives for EXIM were not immediately available to comment. The move is the latest in a series of supportive actions by Washington toward the Tanbreez deposit and Greenland's mining sector. Reuters reported in January that former President Joe Biden's administration had successfully lobbied privately held Tanbreez Mining not to sell to a Chinese developer and instead sell to Critical Metals. Biden officials were visiting Nuuk as recently as last November trying to woo additional private investment in the island. Trump sent Vice President JD Vance to the island in March. The island's mining sector has developed slowly in recent years, hindered by limited investor interest, bureaucratic challenges and environmental concerns. Currently, only two small mines are in operation. Rare earths have strong magnetic properties that make them critical to high-tech industries ranging from electric vehicles to missile systems. Their necessity has given rise to intense competition as Western countries try to lessen their dependence on China's near-total control of their extraction and processing. Beijing in April put export restrictions on rare earths as part of its trade spat with Trump. The two countries earlier this month reached a truce, although Beijing's control of the sector has exacerbated the West's over-reliance and sparked a global hunt for fresh supplies. Despite the loan potential, Critical Metals would still have to either build a processing facility or find an existing site with spare capacity. The company told Reuters that its goal is to process the material inside the U.S., a goal the EXIM loan would make more achievable. Last year, Critical Metals had applied for funding to develop a processing facility from the U.S. Department of Defense, but the review process stalled ahead of Trump's January inauguration. For the EXIM loan's additional funding requirements, Critical Metals said it is considering offtake agreements, royalty streams and funding from other U.S. governmental agencies. Critical Metals told Reuters earlier this year that it has held supply talks with defense contractor Lockheed Martin, among others. Critical Metals' 10th-largest investor is brokerage firm Cantor Fitzgerald, which was formerly led by Howard Lutnick before he joined Trump's cabinet as secretary of the U.S. Commerce Department. Sage told Reuters in January he had never met or talked to Lutnick, but acknowledged Cantor's investment was a positive for his company. EXIM last year extended a letter of interest to Perpetua Resources for a loan worth up to $1.8 billion for its antimony and gold mine in Idaho. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
