Greenland Minerals Limited (ASX:GGG) has secured $7 million through a heavily oversubscribed share placement to Australian and Asian institutional investors, with a strong show of support from existing shareholders.
Funds raised will go towards technical development at the company’s Kvanefjeld Project in Greenland, which is underpinned by a JORC-compliant resource of more than 1 billion tonnes and an ore reserve estimate 108 million tonnes to sustain an initial 37-year mine life.
Commitments for 58,333,333 shares were received at an issue price of 12 cents a share, a 20% discount to the twenty-day volume weighted average price of Greenland shares trading up to July 26.
Though limited to institutional and sophisticated investors, the participation of numerous Australian and Asian funds represents a strong endorsement of the company’s work to advance Kvanefjeld toward production.
Along with technical development, the proceeds will go towards:
Progressing the mining licence application through public consultation and impact benefit agreement negotiations;
Continued development of downstream processing and path-to-market strategy; and
READ: Greenland Minerals’ optimised Kvanefjeld feasibility study confirms increased recoveries, reduced costs
The capital raising comes on the heels of a successful feasibility optimisation program, guided by rare earth company and Greenland Minerals major shareholder Shenghe Resources Holding Co Ltd, that resulted in a 40% reduction in both capital and operating cost estimates.
Outcomes of the program have positioned Kvanefjeld as the lowest capital intensity, lowest unit costs of production and longest mine life of emerging ASX-listed rare earth projects.
As one of the small number of advanced rare earth projects globally, Kvanefjeld offers a new, simpler path to rare earth production than traditional refractory sources.