Critical Metals Corp Secures US$120,000,000 LOI for a 15-Year Term Loan From the US Federal Government Bank (EXIM Bank) for the Development of its Tanbreez Rare Earth Project in Greenland

Rhea-AI Summary

Critical Metals Corp (NASDAQ: CRML) has secured a Letter of Interest from EXIM Bank for a $120 million non-dilutive funding package with a 15-year term. The funding will support the development of the Tanbreez Project in Greenland, one of the world's largest rare earth deposits. The project requires $290 million in total capital expenditure and is expected to produce 85,000 metric tons of rare earth material annually at initial commercial production. The company plans to complete a definitive feasibility study by end of 2025 and invest $10 million in exploration to increase its ownership to 92.5%. The funding comes through EXIM's Supply Chain Resiliency Initiative under the China and Transformational Exports Program, aimed at countering China's dominance in rare earth supply chains.

Positive

• Secured $120 million non-dilutive funding through EXIM Bank's 15-year term loan
• Project expected to produce 85,000 metric tons of rare earth material annually
• Opportunity to increase ownership stake to 92.5% in the Tanbreez Project
• Strategic backing from US government to counter China's rare earth dominance
• Definitive feasibility study completion expected by end of 2025

Negative

• Total capital expenditure requirement of $290 million exceeds the secured funding of $120 million
• Additional funding may be needed to cover the remaining $170 million capital expenditure gap
• $10 million exploration expense required to increase ownership stake

Insights

Mining Industry Financial Analyst

EXIM Bank's $120M LOI for Tanbreez project significantly advances CRML's rare earth ambitions against China's market dominance.

Critical Metals Corp has secured a $120 million non-dilutive funding package via a Letter of Interest from the Export-Import Bank of the United States, representing a transformative development for the company's Tanbreez rare earth project in Greenland. This 15-year term loan through EXIM's Supply Chain Resiliency Initiative provides the company with substantial financial runway without shareholder dilution.

The funding package strategically addresses three critical dimensions: completion of technical and economic studies, execution of pre-production activities, and initiation of mining operations. With total capital expenditure requirements estimated at $290 million for initial commercial production, this EXIM backing covers approximately 41% of the necessary investment, significantly de-risking the project's path to production.

The Tanbreez deposit represents a geopolitically significant asset in the global rare earths supply chain. At planned capacity of 85,000 metric tons of rare earth material annually, this operation would establish a meaningful Western-controlled source in a market historically dominated by Chinese production. The company's planned $10 million exploration investment could increase its ownership stake from the current 42% to 92.5%, substantially enhancing equity value upon successful development.

This EXIM backing is particularly notable as it comes through a program specifically designed to counter Chinese dominance in strategic sectors. The facility's eligibility under Section 402 of EXIM's reauthorization indicates the project's alignment with U.S. strategic interests in securing critical mineral supply chains, potentially providing additional regulatory and policy tailwinds for project advancement.

Non-dilutive funding package expected to be sufficient to enable the Tanbreez Project to complete pre-production activities and commence mining

NEW YORK, June 16, 2025 (GLOBE NEWSWIRE) -- Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp” or the “Company”), a leading critical minerals mining company, today announced that it has received a Letter of Interest from the Export-Import Bank of the United States (EXIM), for a total non-dilutive funding package of $120 million. This funding package from the U.S’s official export credit agency is expected to be used to develop the Tanbreez Project, one of the world’s largest rare earth deposits located in Greenland.

Based on preliminary information submitted by Critical Metals Corp for the Tanbreez Project, EXIM will consider financing up to $120 million of the project’s costs with a repayment term of 15 years under EXIM’s new Supply Chain Resiliency Initiative (SCRI). The amount of funding is expected to be sufficient for Critical Metals Corp to complete necessary technical and economic studies, pre-production activities, and begin mining at the Tanbreez Project.

The Company expects that the Tanbreez Project will require $290 million in capital expenditure to bring it to initial commercial production. In its initial commercial production phase, the Company expects that the Tanbreez Project will be capable of producing up to 85,000 metric tons of rare earth material annually.

“This is a tremendous milestone for Critical Metals Corp which highlights to the rare earths supply chain, Western Governments and investors that Tanbreez is a world-class asset that will provide mission-critical rare earth metals to counter China’s continued dominance,” said Tony Sage, CEO and Chairman of Critical Metals Corp. “The Company appreciates the support of EXIM Bank and the US Federal Government as well as our Greenland partners in this major achievement. We are now razor focused to put Tanbreez into production as soon as possible.”

In addition to continuing to progress its verification, de-risk the asset, and prepare for additional pre-production activities, including additional drilling, Critical Metals Corp expects to complete a definitive feasibility study by the end of 2025, which is expected to include important data, such as volumes and timeline estimates. In addition, the Company expects to invest $10 million in exploration expenses in Tanbreez in 2025 to have the option to acquire an additional 50.5% of the asset, bringing its total ownership to 92.5%.

The proposed funding package may be eligible for special consideration under Section 402 of EXIM's 2019 reauthorization, which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People's Republic of China and other covered countries and/or to advance the comparative leadership of the United States in Transformational Export Areas.

The SCRI program is under The China and Transformational Exports Program (CTEP), which is an EXIM program established to help U.S. exporters compete with Chinese companies and ensure U.S. leadership in emerging technologies. Through CTEP, U.S. companies can benefit from reduced fees, extended repayment terms, and other tailored policies.

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 flagship Project, Tanbreez, is one of the world's largest rare earth deposits and is located in Southern Greenland. The deposit is expected to have access to key transportation outlets as the area features year-round direct shipping access via deep water fjords that lead directly to the North Atlantic Ocean.

Another key 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 asset in an expanding geostrategic critical metals portfolio.

With this strategic asset portfolio, Critical Metals Corp is positioned to become a reliable and sustainable supplier of critical minerals essential for defense applications, the clean energy transition, and next-generation technologies in the western world.

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

About the Export-Import Bank of the United States

The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Learn more at www.exim.gov.

Cautionary Note Regarding 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 may include 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.

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 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. 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 size of the EXIM Bank loan secured by Critical Metals Corp (CRML)?

Critical Metals Corp secured a $120 million Letter of Interest from EXIM Bank with a 15-year term loan for the Tanbreez Rare Earth Project.

What is the expected annual production capacity of CRML's Tanbreez Project?

The Tanbreez Project is expected to produce up to 85,000 metric tons of rare earth material annually in its initial commercial production phase.

How much total capital expenditure does CRML need for the Tanbreez Project?

The Tanbreez Project requires a total capital expenditure of $290 million to bring it to initial commercial production.

What is CRML's current ownership stake in the Tanbreez Project and how can it increase?

The company can increase its ownership stake to 92.5% by investing $10 million in exploration expenses in 2025.

When will Critical Metals Corp complete the definitive feasibility study for Tanbreez?

Critical Metals Corp expects to complete the definitive feasibility study by the end of 2025.