Greenland Minerals and Energy Ltd (GGG) announces that it has finalised an agreement with Westrip Holdings and Rimbal Pty Ltd to acquire the outstanding 39% of the exploration license over the northern Ilimaussaq Complex in Greenland that the Kvanefjeld multi‐element deposit (rare earth elements, uranium, zinc) and nearby satellite deposits; namely Zones 2 and 3.
Kvanefjeld’s significance is underpinned by the world’s largest JORC‐code or NI 43‐101 compliant resource of rare earth oxides with substantial resources of uranium and zinc (contained metal inventory of 6.6 Mt total rare earth oxide, 350 Mlbs U3O8, 3 Blbs zinc). Three drill rigs are currently operating on the recently discovered satellite deposits, with the program anticipated to lead to a substantial increase in the project’s overall resource base. This acquisition is in line with the GMEL’s stated objective to develop the Kvanefjeld project. To this end the executive team recognised the importance to now move to 100% control of the asset in a manner that is clearly value accretive for the company’s shareholder base. Importantly, 100% ownership will place GMEL in a strong position to engage potential strategic partners looking to gain access to the extensive resource base, and facilitate its development.
“Securing 100% ownership of the Kvanefjeld project is an important step and comes at a time when the Company is making major technical advances in process development that will strengthen Kvanefjeld’s great potential, and the environment and social impact assessments are progressing on schedule in close consultation with Greenlandic stakeholders. In the context of our future development, we believe the time is now right to secure 100% of what is clearly a tier 1 mining asset.”
GMEL entered into a Joint Venture agreement with Westrip in 2007 that saw the Company acquire a 61% share of a Greenland‐registered company ‘Greenland Minerals and Energy A/S, which owned 100% of the exploration license over the northern Ilimaussaq Complex in Greenland. Under the joint venture agreement, GMEL became the manager and operator of the project, and had options to move to 90% ownership for $10M (AUD), and to 100% ownership for a final payment of $50M (AUD). There existed no time‐restrictions on these options, payable at GMELs elect. The payment could be made in cash or shares at Westrip’s elect.
As a spokesman for Westrip/Rimbal stated, “We are pleased with the outcome of the settlement process, and as an ongoing supportive shareholder in GMEL, it is our position that this corporate development represents another important step in unlocking the potential of Kvanefjeld. We further believe that all parties can move forward and look to future co‐operation so as to establish Greenland as major new supplier of specialty metals.”
Greenland Minerals and Energy Ltd (ASX – GGG) is an exploration and development company focused on developing high‐quality mineral projects in Greenland. The Company’s flagship project is the Kvanefjeld multi‐ element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. An interim report on pre‐feasibility studies has demonstrated the potential for a large‐scale multi‐element mining operation.
www.ggg.gl
http://www.traderdealer.com.au/fundamentals/ggg
