Critical Metals Corp. (NASDAQ:CRML) shares are trading higher Thursday after the company entered into a definitive long-term rare earth product offtake agreement with REalloys Inc. (NASDAQ:ALOY) covering 15% of monthly Phase 1 production from its Tanbreez Project in southern Greenland.
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Key Commercial Terms
The agreement, executed on May 20, replaces and supersedes the non-binding letter of intent previously announced by the parties. Production from any subsequent phase of the Tanbreez Project is excluded from the agreement.
Under the agreement, REalloys will receive 15% of monthly Phase 1 production from the Tanbreez Project, subject to a plus-or-minus 5% operational variance. Critical Metals has publicly disclosed Phase 1 nameplate capacity of up to 15,000 metric tons of rare earth concentrate annually.
The agreement includes an initial 15-year term beginning with first commercial delivery and contains extension provisions. Pricing will be based on a market-referenced formula with floor-price protection on specified payable elements, although certain recovery assumptions and floor prices remain subject to finalization under the agreement.
The agreement is also subject to a five-year long stop date, after which either party may terminate if first commercial delivery has not occurred.
Tanbreez Ownership And Supply Chain Expansion
Critical Metals said the Government of Greenland approved the transfer of the final 50.5% interest in Tanbreez Mining Greenland A/S to the company in April, increasing its ownership stake in the Tanbreez Project to 92.5%.
The company said the Tanbreez deposit is recognized in its public technical disclosures as one of the largest known heavy rare earth element deposits globally, including dysprosium and terbium.
REalloys said the agreement supports its broader mine-to-magnet strategy and complements its existing supply, processing and downstream relationships across Canada, the United States, Brazil and Kazakhstan.
"The Offtake Agreement with Critical Metals is a definitive contractual milestone for REalloys and a critical building block of our mine-to-magnet strategy," REalloys CEO Leonard Sternheim said.
Critical Metals Stock Jumps
CRML Price Action: At the time of publication, Critical Metals shares are trading 7.07% higher at $11.51, according to data from Benzinga Pro.
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