Critical Metals Corp (NASDAQ:CRML) shares surged more than 73% in early trading on Monday following a Reuters report that the US government was in discussions to buy an ownership stake in the company.
Critical Metals is developing a 4.7 billion metric ton rare earth deposit in Greenland, a territory that US President Trump has previously suggested the US should purchase.
The US government has recently announced deals to buy equity interests in companies such as Lithium Americas and MP Materials, in an effort to secure critical minerals and reduce its reliance on China.
Critical Metals acquired Greenland's Tanbreez rare earth deposit last year for $5 million in cash and $211 million in stock.
Earlier this year, the company applied for a $50 million Defense Production Act grant, which the US government has since discussed converting into a roughly 8% equity stake, Reuters wrote, citing four sources.
Critical Metals also announced on Monday that it has agreed to raise $35 million from an unnamed institutional investor to fund Tanbreez's development.
Critical Metals stock has gained more than 110% year to date to its current price of $13.78 per share.