Updates shares, adds analyst comments in paragraphs 3 to 6, details from regulatory filings in paragraphs 10, 12

By Vallari Srivastava

Oct 6 (Reuters) - Shares of Critical Metals CRML.O surged nearly 53% in premarket trading on Monday after Reuters reported the U.S. government was in talks to buy a stake in the miner, the latest in Washington's deal-making push to secure the supply of rare earths.

A deal, if successful, would give the U.S. government a direct interest in the largest rare earths project in Greenland, a strategically important and mineral-rich Arctic territory that President Trump has previously suggested the U.S. should take over.

"A U.S. stake in (Tanbreez) would mark a significant step toward building a diversified 'mine-to-magnet' supply chain independent of China," said Neha Mukherjee, a research manager at Benchmark Mineral Intelligence.

Washington has been pushing to secure critical minerals and reduce reliance on China, taking stakes in producers such as Lithium Americas LAC.TO and MP Materials MP.N.

The government is not just backing domestic projects, it is also targeting overseas assets in resource-rich but underdeveloped regions, Mukherjee said.

"It also signals that we could see more such deals emerge, particularly in early-stage projects with significant resource potential."

Critical Metals had acquired Grennland's Tanbreez rare earth deposit last year for $5 million in cash and $211 million in stock.

The company applied earlier this year for a $50 million Defense Production Act grant, which Washington has since discussed converting into an equity stake, the report said.

If finalized, that conversion would equal roughly an 8% stake, though talks remain preliminary, the sources said.

Separately, Critical Metals said it agreed to raise $35 million from an unnamed institutional investor to fund Tanbreez's development.

Shares have gained about 17% this year, valuing the company at roughly $787 million.

On Monday, the firm also said it has restated financial statements for the six months ended December 31, 2024, and 2023, cautioning investors not to rely on the earlier reports.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid and Leroy Leo)

((Srivastava.Vallari@thomsonreuters.com;))