Critical Metals Corp., which holds shares in Tanbreez, has received a letter of intent for a possible loan of $120 million from EXIM Bank. “A step in the right direction,” says the Department of Mineral Resources, which points out, however, that there are still a number of tasks to be completed before a mine can be opened in Killavaat Alannguat.

The Australian-American company Critical Metals Corp., a minority shareholder in the Australian company Tanbreez, which holds the exploitation permit for Killavaat Alannguat, has just published a letter of intent from the American EXIM Bank regarding a possible loan of up to 120 million dollars for the development of the Tanbreez project.

The Australian-American

Critical Metals Corp. has previously stated that they are working on taking over the Tanbreez company and thus also the license for the area, which will, however, require approval from the Government of Greenland. 

The Australian-American company Critical Metals Corp., a minority shareholder in the Australian company Tanbreez, which holds the exploitation permit for Killavaat Alannguat, has just published a letter of intent from the American EXIM Bank regarding a possible loan of up to 120 million dollars for the development of the Tanbreez project.

The Australian-AmericanAnnouncement

Critical Metals Corp. has previously stated that they are working on taking over the Tanbreez company and thus also the license for the area, which will, however, require approval from the Government of Greenland. 

Milestone for the company 

According to Critical Metals Corp., it is expected that $290 million is needed to start commercial production of rare earth metals from the area. 

But CEO and Chairman of the Board of Critical Metals Corp., Tony Sage, calls it a huge milestone for the company that they have now received a letter of intent for a loan from EXIM Bank.

 – It could pave the way for a rare earth supply chain, while also demonstrating to government leaders and investors that Tanbreez is a world-class asset that will be able to deliver critical earth metals that can counter Chinese dominance in the market, says Tony Sage in a press release.

A letter of intent – not a loan

 The Ministry of Trade and Mineral Resources has also read the press release from Critical Metals Corp., and here they call it good news, although they also point out that it is an application for a loan and in response to this application, EXIM Bank has issued a kind of letter of intent.

– This is not a final loan relationship with Critical Metals Corp., which is a minority shareholder in Tanbreez. But a declaration of intent from EXIM Bank, writes Head of Department Jørgen Hammeken-Holm.

Possible source of funding 

According to the ministry, EXIM Bank is an example of a source of financing that the Government of Greenland has been working to bring into play.

– Similar conditions have previously applied in relation to the Ironbark project in North Greenland, writes Jørgen Hammeken-Holm and continues: 

– The Government of Greenland has long made mineral-importing countries aware that it would be beneficial for the projects, especially projects with critical minerals such as in the case of Tanbreez, if they received suitable financing solutions from the countries’ import-export banks or similar financing sources. So the letter of intent that has come from EXIM Bank is good news. However, it must be emphasized that this type of loan naturally comes with a number of requirements and conditions that the projects must be able to comply with, so the letter of intent provided is not the same as a guarantee that the loan will be granted. But it is a step in the right direction.

Tasks to be solved

GREENMETS DIREKTØR DREW HORN I GRØNLAND

American Drew Horn, who has previously held senior positions in the White House and the US Department of Energy, is currently the CEO of investment company GreenMet, which is trying to raise financing for the supply chain of critical metals. Drew Horn has been to Greenland several times recently, and he was also on board the first direct flight from New York to Nuuk.

GreenMeet announced in April that it had entered into a strategic partnership with Tanbreez. The Department of Trade and Mineral Resources says it has not had any contact with Drew Horn regarding his recent visit and that no meeting with him is planned.

 According to the department, however, it should also be noted that a similar amount is still outstanding as capital contributions to the company. 

Jørgen Hammeken-Holm further points out that Tabreez still has the exploitation permit, but that the company has some tasks they need to solve before they can open a mine. 

– What is outstanding before they can open a mine is not just the funds to build it. It is also a number of approvals for the facilities and a plan for closure. According to the permit, Tanbreez must have their mining and closure plan approved by December 31, 2025 at the latest. We of course expect that Tanbreez will both submit the necessary papers/applications for approvals on time, and that they will also succeed in getting financing in place. But that responsibility lies with the company, says the head of the department.

The Australian-American company Critical Metals Corp., a minority shareholder in the Australian company Tanbreez, which holds the exploitation permit for Killavaat Alannguat, has just published a letter of intent from the American EXIM Bank regarding a possible loan of up to 120 million dollars for the development of the Tanbreez project.

The Australian-American

Critical Metals Corp. has previously stated that they are working on taking over the Tanbreez company and thus also the license for the area, which will, however, require approval from the Government of Greenland. 

The Australian-American company Critical Metals Corp., a minority shareholder in the Australian company Tanbreez, which holds the exploitation permit for Killavaat Alannguat, has just published a letter of intent from the American EXIM Bank regarding a possible loan of up to 120 million dollars for the development of the Tanbreez project.

The Australian-AmericanAnnouncement

Critical Metals Corp. has previously stated that they are working on taking over the Tanbreez company and thus also the license for the area, which will, however, require approval from the Government of Greenland. 

Milestone for the company 

According to Critical Metals Corp., it is expected that $290 million is needed to start commercial production of rare earth metals from the area. 

But CEO and Chairman of the Board of Critical Metals Corp., Tony Sage, calls it a huge milestone for the company that they have now received a letter of intent for a loan from EXIM Bank.

 – It could pave the way for a rare earth supply chain, while also demonstrating to government leaders and investors that Tanbreez is a world-class asset that will be able to deliver critical earth metals that can counter Chinese dominance in the market, says Tony Sage in a press release.

A letter of intent – not a loan

 The Ministry of Trade and Mineral Resources has also read the press release from Critical Metals Corp., and here they call it good news, although they also point out that it is an application for a loan and in response to this application, EXIM Bank has issued a kind of letter of intent.

– This is not a final loan relationship with Critical Metals Corp., which is a minority shareholder in Tanbreez. But a declaration of intent from EXIM Bank, writes Head of Department Jørgen Hammeken-Holm.

Possible source of funding 

According to the ministry, EXIM Bank is an example of a source of financing that the Government of Greenland has been working to bring into play.

– Similar conditions have previously applied in relation to the Ironbark project in North Greenland, writes Jørgen Hammeken-Holm and continues: 

– The Government of Greenland has long made mineral-importing countries aware that it would be beneficial for the projects, especially projects with critical minerals such as in the case of Tanbreez, if they received suitable financing solutions from the countries’ import-export banks or similar financing sources. So the letter of intent that has come from EXIM Bank is good news. However, it must be emphasized that this type of loan naturally comes with a number of requirements and conditions that the projects must be able to comply with, so the letter of intent provided is not the same as a guarantee that the loan will be granted. But it is a step in the right direction.

Tasks to be solved

GREENMETS DIREKTØR DREW HORN I GRØNLAND

American Drew Horn, who has previously held senior positions in the White House and the US Department of Energy, is currently the CEO of investment company GreenMet, which is trying to raise financing for the supply chain of critical metals. Drew Horn has been to Greenland several times recently, and he was also on board the first direct flight from New York to Nuuk.

GreenMeet announced in April that it had entered into a strategic partnership with Tanbreez. The Department of Trade and Mineral Resources says it has not had any contact with Drew Horn regarding his recent visit and that no meeting with him is planned.

 According to the department, however, it should also be noted that a similar amount is still outstanding as capital contributions to the company. 

Jørgen Hammeken-Holm further points out that Tabreez still has the exploitation permit, but that the company has some tasks they need to solve before they can open a mine. 

– What is outstanding before they can open a mine is not just the funds to build it. It is also a number of approvals for the facilities and a plan for closure. According to the permit, Tanbreez must have their mining and closure plan approved by December 31, 2025 at the latest. We of course expect that Tanbreez will both submit the necessary papers/applications for approvals on time, and that they will also succeed in getting financing in place. But that responsibility lies with the company, says the head of the department.