Critical Metals, Ucore both rise on rare earths offtake agreement for Tanbreez project

[Modern industry depends on mining for the valuable rare-earth, rare earth crystal detail]
Joaquin Corbalan/iStock via Getty Images

Critical Metals (NASDAQ:CRML [https://seekingalpha.com/symbol/CRML]) +3.7% and Ucore Rare Metals (OTCQX:UURAF [https://seekingalpha.com/symbol/UURAF]) +5.9% in volatile trading Tuesday after the companies said Critical Metals signed a letter of intent to supply [https://seekingalpha.com/pr/20212036-critical-metals-corp-nasdaq-crml-secures-10-year-tanbreez-off-take-agreement-with-department] heavy rare earth concentrate from its Tanbreez project in Greenland to Ucore's U.S. Department of Defense-funded processing facility in Louisiana.

Under the terms of the 10-year offtake arrangement, Critical Metals (NASDAQ:CRML [https://seekingalpha.com/symbol/CRML]) said it expects to supply as much as 10K metric tons/year of rare earth concentrate from Tanbreez, which represents ~10% of the project's initial projected production; after hydro-metallurgical processing, the concentrate will be used as feedstock for Ucore’s (OTCQX:UURAF [https://seekingalpha.com/symbol/UURAF]) rare earth element processing facility, which broke ground in May in Louisiana.

Ucore's (OTCQX:UURAF [https://seekingalpha.com/symbol/UURAF]) Louisiana facility previously received $18.4M from the DoD for the first of four phases of construction, and the company has said it aims to produce 2K metric tons/year of high-purity rare earth oxides next year, with capacity expected to be scaled up to 7,500 tons/year in 2028.

"Securing this offtake provides Critical Metals Corp. both with our first buyer and the flexibility to supply other U.S.-based rare earth facilities in the future, given the immense size of our Tanbreez deposit," Critical Metals (NASDAQ:CRML [https://seekingalpha.com/symbol/CRML]) Executive Chairman and CEO Tony Sage said.

MORE ON CRITICAL METALS CORP.

* Critical Metals: Billion-Dollar Greenland REE Project Amid Westerners' Desire For Green Economy And Weaponisation [https://seekingalpha.com/article/4795076-critical-metals-billion-dollar-greenland-ree-project-amid-westerners-desire-for-green-economy-and-weaponisation]
* Critical Metals: It's Not Obvious They'll Get Financed [https://seekingalpha.com/article/4763310-critical-minerals-its-not-obvious-theyll-get-financed]
* Financial information for Critical Metals Corp. [https://seekingalpha.com/symbol/CRML/income-statement]