The mining company Critical Metals Corp., which is registered in the Virgin Islands and which in 2024 came to the American stock exchange Nasdaq, has now formally applied to the self-government to take over Tanbreez' mining license in Killavaat Alannguat.
Acquisition of shares
It has been a good six years since the Australian-American company began acquiring shares in Tanbreez. However, it is only now that they have 49.5 percent of the shares in the company and with the promise of an additional 1.5 percent and thus the majority of shares, they are allowed to apply to the self-government for a takeover of the license.
This is according to the Australian director of Critical Metals Corp., Tony Sage, who last week participated in the PDC conference in Toronto together with the director of Tanbreez, Greg Barnes.
Massive investments
According to Tony Sage, Critical Metals Corp. has invested approximately 20 million US dollars in the project since 2020, and is aiming to invest a further 50 million dollars this year.
– The 50 million dollars will be used, among other things, to establish storage facilities and a camp in the area, as well as an office in Qaqortoq. In addition, we have applied to the department for permission to build a road from the mine to the warehouse, says Tony Sage, who explains that the company went public in 2024, because it wanted access to American investors.
According to Tony Sage, between 500-700 million dollars will be invested in developing the project, and it is believed that this can only be done on the American investor market. The company has already received a letter of intent for a loan of 120 million dollars from Exim Bank, if the company is allowed to take over the license.
The case is under consideration in the department
In the Department of Raw Materials, naalakkersuisoq Naaja H. Nathanielsen confirms that they have received the application from Critical Metals Corp., and that they are currently processing the case.
– We expect to be able to make a decision within a relatively short time, but it is a process that takes some time, as we are obliged by law to check both the company and the individuals behind the company thoroughly, which has been further tightened in the new Mining Act, says Naaja H. Nathanielsen and adds:
– For example, we are obliged to look at how the company has acted in other previous licenses, and whether there have been judgments in previous cases. In addition, we look at whether the company has the prerequisites both technically and financially to be able to continue the project at least the same level as the previous owner, says Naaja H. Nathanielsen.
Previous judgments for the parent company Sermitsiaq has previously said that Critical Metals Corp. may have problems complying with Greenlandic legislation, as a licensee must not have been convicted or have accepted a fine or other penalty within the past four years for, among other things, bribery or fraud.
For European Lithium, which owns 83 percent of the shares in Critical Metals Corp. and who share management, have in 2020, 2021 and 2022 been fined for stock market manipulation, market abuse and breach of reporting obligations for a total of 343,000 euros or approximately 2.6 million kroner, as shown by statements from the Austrian Financial Market Authority FMA Österreich.
Complaint from environmental organization
In addition, the environmental organization NOAH submitted a complaint to Nasdaq headquarters in New York in 2024 when they believed that European Lithium provided incorrect information to their shareholders that they have all licenses in place for their project in Austria, which according to the Austrian Ministry of Finance was not the case.
Finally, Sermitsiaq has also told how two Romanian media outlets: Romania-Insider.com and Ziarul Financiar have linked European Lithium to the controversial Romanian-Australian businessman Frank Timis, who allegedly holds the majority of the shares in the company as a shadow manager with the aim of ensuring that Romania can become a processing site for a future industrial plant for the production of metals and magnets for industry and defense.
Collaboration with Saudi Arabia on processing plants
Technicalities led to convictions
When asked about the various incriminating cases, Tony Sage tells Sermitsiaq that in relation to the convictions in Austria, there are technicalities due to shares being traded in different time zones in Australia and Austria, respectively, which subsequently meant that the company delisted its shares from the Vienna Stock Exchange.
In addition, Tony Sage points out that a thorough background check was carried out on him when the company was going to be listed on the US stock exchange in 2024.
– Regarding the story that businessman Frank Timis is supposed to hold the majority of the shares in European Lithium, this is not correct. He does not have shares in European Lithium, and has only helped us get through to the Romanian government regarding the possible establishment of a refinery, says Tony Sage, who also rejects the criticism from the environmental organization NOAH.
– We are not worried about that part.
According to the department, a decision will probably be made on whether Critical Metals Corp. can take over the mining license in Killavaat Alannguaq before the end of March.
