Greenland Minerals and Energy Ltd, is a mineral exploration and development company, focused on unlocking the mineral riches of Greenland, one of the world’s last natural resource frontiers. Our aim is simple; to identify large mineral deposits with the potential to underpin long term, economically robust mining operations. This is achieved through technically-focused exploration, aggressive resource development programs, and a strong understanding of the fundamentals that drive the business of mineral exploration and development globally.
Our flagship project is Kvanefjeld, a multi-element deposit located near the southwest tip of Greenland. Through focused exploration, Kvanefjeld is rapidly growing to become one to the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride, commodities with long term forecasts for strong demand increases.
Greenland Minerals and Energy (ASX: GGG) has completed the acquisition of the 4% royalty applicable to net profits from the production of metals on license 2005/28 in South Greenland.
Greenland Minerals currently holds a legal and beneficial interest of 61% with rights to move to 100% when the Company deems it most appropriate.
Consideration paid for the royalty was 15.5m shares in the company, which will be subject to ASX escrow provisions of not less than 12 months.
Roderick McIllree managing director of Greenland Minerals said funds raised from placement of 25m shares at $0.20c and 5m shares at $0.25c in May 2009 to fund the acquisition, will instead be used to continue work on the pre-feasibility study on vanefjeld which sits on the Ilimaussaq Mineral Field.
McIllree said the company can now focus its attention on the pre-feasibility study and further beneficiation and metallurgical refinement as it continues to optimise its flow sheet.
He said the company believes the acquisition of this royalty is a key milestone which will assist with any potential funding to facilitate development in the future.