Critical Metals Corp. Nasdaq-CRML Executes a Term Sheet for a 50/50 Joint Venture for Up-To $1,500,000,000 USD Rare Earth Processing Facility with a Leading Saudi Arabian Industrial

(MENAFN- Your Mind Media ) 16th January 2025

Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp.” or the “Company”), a leading critical minerals mining company, today announced that it has executed a non-binding term sheet for the formation of a 50% / 50% joint venture (the “JV”) between CRML and Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company. (“TQB”), a 75-year-old globally diversified industrial conglomerate group based in Saudi Arabia.
The term sheet outlines the framework for the development, financing, construction, and operation of a state-of-the-art rare earth processing facility in the Kingdom of Saudi Arabia, creating a fully integrated mine-to-processing supply chain. The transaction includes long-term offtake rights for 25% of the Tanbreez Project’s rare earth concentrate production to Saudi Arabia, supporting secure supply for advanced manufacturing, energy transition, and defense-related industries across allied markets.
TRANSACTION HIGHLIGHTS
•Integrated Supply & Processing Partnership: Execution of a term sheet covering offtake, project financing, development, and the formation of a 50/50 joint venture to construct and operate a rare earth processing facility in Saudi Arabia, directly expanding non-Chinese global processing capacity.
•United States & Kingdom of Saudi Arabia Vision 2030 and Strategic Defense Supply Chain: The partnership will send all finished materials to the United States of America for use in the defense industrial complex of the USA.
•Capital-Efficient Structure: CRML will not issue equity or incur debt in connection with the JV and will retain its 50% ownership interest on a carried-interest basis, with no capital expenditure obligations related to construction of the processing facility.
•Strategic Offtake: The JV framework provides for 25% of the Tanbreez Project’s rare earth concentrate production to be supplied to Saudi Arabia for the life of mine, under long-term, market-based commercial terms.
•Advanced Products: The processing facility is expected to produce separated rare earth oxides, metals, and downstream products, including magnet-grade materials suitable for aerospace, defense, and high-performance industrial applications.
•Supply Chain Security: The partnership establishes a resilient and long-term partnership, geopolitically diversified supply chain linking Western-aligned upstream resources with Middle Eastern downstream processing capacity.
•Fully Contracted Offtake Profile: With the addition of this 25% long-term offtake commitment to Saudi Arabia, and together with previously announced agreements, 100% of the Tanbreez Project’s rare earth concentrate production is now allocated under long-term offtake arrangements, providing full revenue visibility and securing supply to strategic, allied markets for the life of mine.

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