European Lithium Ltd (ASX: EUR), an exploration and development stage mining company focused on lithium, rare earth, precious metals and base metals in Austria, Ireland, Ukraine, and Australia, has announced that Critical Metals Corp. (Nasdaq: CRML) has signed a letter of intent (LOI) for an offtake agreement with Ucore Rare Metals Inc (Ucore). Ucore is a leader in rare- and critical-metal resources, extraction, beneficiation, and separation technologies. The agreement focuses on rare earth concentrate from Critical Metals’ Tanbreez Rare Earth Project in Greenland.
Under the terms of the multi-year arrangement, Critical Metals expects to supply up to 10,000 metric tons annually of rare earth concentrate, representing approximately 10% of the project’s initial projected production. This concentrate will serve as feedstock for Ucore’s rare earth element processing facilities, including a facility in Alexandria, Louisiana, supported by the U.S. Department of Defense, and another in Kingston, Ontario. The Louisiana facility will produce high-purity rare earth oxides from mixed rare earth carbonates or oxides, which Critical Metals expects to produce at the Tanbreez Project.
Pat Ryan, Chairman and CEO of Ucore, stated that the Tanbreez project offers significant opportunities due to its concentration of heavy rare earths. Tony Sage, Executive Chairman of EUR, highlighted that this offtake agreement provides Critical Metals with its first buyer and the flexibility to supply other U.S.-based rare earth facilities. Both companies share a vision to reduce China’s control over the rare earth ecosystem in the West.
The parties are working towards definitive documentation, subject to customary conditions, including due diligence, finalization of commercial terms, and necessary approvals. A copy of the original announcement released by CRML is available on the Nasdaq website.
