Greenland Minerals and Energy (ASX:GGG) has received notice of initial substantial shareholding from Global X Uranium ETF, which has a 7.35% interest in the company.
Global X Uranium ETF’s holding of 48,101,50 shares is well timed given the rise in spot uranium by US$1.25 a pound to US$30 a pound, a level not seen since May.
The Global X Uranium ETF has built an investment portfolio of uranium mining companies worldwide with substantive upside.
Greenland Minerals and Energy has also been progressing its Kvanefjeld uranium and rare earth deposit in Greenland with the company saying in early August that it was finalising the Environmental and Social Impact Assessments.
These form critical components of a mining licence application, and will be completed in the coming months.
Kvanefjeld has Resources of 956 million tonnes, containing 575 million pounds uranium and 10.33Mt total rare earth oxide
The company is currently completing the Feasibility Study for a mine, concentrator and hydrometallurgical refinery in Greenland treating 3 million tonnes of ore per annum.
This will produce 230,000 tonnes per annum of a rare earth mineral concentrate which contains 14% REO and 0.25% U3O8.
Refining of this mineral concentrate is expected to produce 7,000 tonnes per annum of critical rare earths, 16,000 tonnes per annum of light rare earths and 1.1 million pounds of U3O8.
The increase in price of uranium is useful for companies like Greenland Minerals and could be a predicator of good macro things to come as Japan’s Hokuriku Electric has now signed up for the safety checks required by the Nuclear Regulation Authority before reactors can be restarted.
All 10 of Japan’s nuclear station owners have now sought the checks.
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