Mining development company Critical Metals has agreed to acquire a controlling stake in the Tanbreez rare earth mine in Greenland from Rimbal in a deal worth up to $211m.

Rimbal is a company controlled by geologist Gregory Barnes.

Located in Southern Greenland, the Tanbreez project is expected to contain over 27% heavy rare earth elements (HREE), that significantly carry higher value than light rare earth elements.

The critical minerals asset, which is fully permitted, is projected to deliver rare earth elements (REEs) to customers in the western hemisphere once operational.

Its supply will support the production of a wide range of next-generation commercial products along with addressing the demand from the defence sector.

The Tanbreez Project was granted an exploitation licence by the Greenland government in 2020, allowing for mining operations on the asset. Additionally, the project holds an estimated resource of 4.7 billion tons, encompassing multiple elements, with the conversion of S-K 1300 currently in progress.

Through the acquisition, Critical Metals aims to strengthen its position as a major supplier of critical minerals for the western world.

According to Critical Metals, western countries can reduce their dependence on imports and strengthen their national security by centralising the supply chain for critical minerals. This can be achieved by collaborating with the mining company and the Tanbreez project, said the firm.

Critical Metals CEO and chairman Tony Sage said: “With Tanbreez expected to be under the Critical Metals Corp banner, we will have the ability to further support our commercial network in Europe while simultaneously being able to evaluate additional opportunities to tap into the upside potential of the North American market.

“Critical Metals Corp continues to capitalise on macro-economic tailwinds and government support which are accelerating the demand for critical minerals as we play an essential role in supporting the green energy transition.”

Jett Capital Advisors, and Cohen & Company Capital Markets are financial advisers to Critical Metals while White & Case is serving as legal adviser.