CRML Shares Spike on U.S. Deal Talks for Greenland Mine

Critical Metals Corp. (NASDAQ: CRML) is experiencing dramatic pre-market gains on Monday, October 6, 2025, following weekend reports that the Trump administration is in discussions to take an equity stake in the company. The New York-based mining exploration firm, which is developing the Tanbreez rare earths deposit in Greenland, saw its shares jump over 41% in pre-market trading to $11.30. The potential government investment underscores the strategic importance of rare earth minerals amid intensifying competition with China for control of resources critical to high-tech industries, electric vehicles, and defense systems.

U.S. May Convert Defense Grant Into 8% Equity Stake in CRML

According to four sources familiar with the negotiations, the Trump administration has shifted from considering a $50 million grant under the Defense Production Act to discussing an equity stake in Critical Metals. If finalized, the conversion would give Washington approximately 8% ownership of the company, though negotiations remain fluid and could result in a different stake size or collapse entirely. The equity investment would be separate from a $120 million loan under consideration by the U.S. Export-Import Bank to help develop the Tanbreez mine, which requires an estimated $290 million to reach commercial production.

This potential stake follows similar government investments in Lithium Americas and MP Materials, highlighting the administration’s strategy to secure American interests in the growing minerals sector. Once operational by 2026, Tanbreez is expected to produce 85,000 metric tons per year of rare earths concentrate, along with gallium and tantalum, positioning it as one of the world’s largest rare earth deposits despite challenges posed by its remote Arctic location.

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CRML Volume Spikes on Speculation of Government Stake

CRML shares opened pre-market trading at $11.30 on Monday morning, representing a stunning 41.60% increase from Friday’s closing price of $7.98. The surge came after exclusive Reuters reporting over the weekend revealed ongoing negotiations between the Trump administration and Critical Metals regarding a potential equity investment. Trading volume has been exceptionally heavy, with the stock showing significant momentum as investors digest the implications of potential U.S. government ownership.

The company’s market capitalization has expanded to approximately $787 million, with the stock’s 52-week range spanning from $1.23 to $9.89. Year-to-date, CRML has delivered returns of 17.53%, outpacing the S&P 500’s 14.18% gain over the same period, though the stock has struggled over longer timeframes with negative three-year and five-year returns.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.