Critical Metals (CRML) Sheds 11% on Rival's Billion-Dollar Govt Backing

We recently published 10 Big Names Stumbling Hard. Critical Metals Corp. (NASDAQ:CRML) was one of the worst performers on Monday.

Critical Metals dropped its share prices by 11.25 percent on Monday to close at $18.30 apiece as investors digested the heightening competition in the rare earths industry after one of its rivals secured a billion-dollar backing from the US government.

At intra-day trading, Critical Metals Corp. (NASDAQ:CRML) jumped by 6 percent to $21.86, albeit the rally was short-lived, having ended the session in the red. The company also fell alongside its counterpart, MP Materials Corp., following the news.

Over the weekend, the Trump administration said that it would invest $1.6 billion in USA Rare Earth Inc. in line with its plans to boost domestic rare earths production and reduce reliance on China. Upon closing, the transaction would give the US government a total of 16.1 million common shares and 17.6 million warrants.

In other news, Critical Metals Corp. (NASDAQ:CRML) said that it inked a memorandum of understanding with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB) for the establishment of one or more joint ventures for the development and operations of a processing plant and a refining facility in Saudi Arabia.

The mining firm said that rare earth resources would come from its Tanbreez Green Rare Earth Mine in Greenland, which is 42-percent owned by the listed firm.

“The company has now entered into four non-binding term sheets for the offtake of rare-earth concentrate extracted from the Tanbreez Project. There can be no guarantee that the company will enter into binding agreements with TQB, or the other term sheet counterparties, on terms favorable to the company or at all,” it said.

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Disclosure: None. This article is originally published at Insider Monkey.