Critical Metals (NASDAQ: CRML) surged roughly 80% pre-market after Reuters-sourced reports said the Trump administration is weighing converting a $50 million Defense Production Act grant into an equity stake in the company developing Greenland’s Tanbreez rare earth project.
Reuters’ sources said officials began talks about six weeks ago to evaluate a grant-to-equity conversion. A senior administration official added, “Hundreds of companies are approaching us… There is absolutely nothing close with this company at this time.”
At Friday’s close, CRML’s market cap was about $786.9 million. A $50 million equity investment would equate to around 6.3% if priced off that valuation. Separate notes estimate “approximately an 8% stake.”
The contemplated stake would extend Washington’s recent shift from lending to ownership in critical minerals following reported equity or warrant positions in Lithium Americas and MP Materials.
Last year, CRML acquired Tanbreez last year for $5 million in cash plus $211 million in stock. The mine is budgeted at $290 million to build, with initial output targeted for 2026. Company materials and reporting cite 45 million tons of rare-earth-bearing rock and an expected 85,000 tonnes per year of rare-earth concentrate. Alongside this are smaller volumes of gallium and tantalum, minerals China has recently restricted for export.
The US discussions are separate from a proposed $120 million Export-Import Bank loan package for early-stage work at Tanbreez, according to the reporting. While President Donald Trump has repeatedly highlighted Greenland’s strategic value, administration outreach has continued through official visits, including by Vice President JD Vance earlier this year.
Information for this story was found via Benzinga, InvestorsHub, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
