Critical Metals 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 US’ 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.

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 US exporters compete with Chinese companies and ensure US leadership in emerging technologies. Through CTEP, US companies can benefit from reduced fees, extended repayment terms, and other tailored policies.