Greenland Minerals and Energy (GGG) is set to finalise a rare-earth uranium mining licence application after raising $8.87 million through a rights issues which has been backed by Australian and European investors.
The Kvanefjeld project, based in southern Greenland, is one of the largest of its kind.
The company is offering shareholders 88,685,050 new shares via an offer of two shares priced at $0.10 each for every 13 held.
It represents a potentially lucrative investment opportunity, for Kvanefjeld is home to one of the world’s biggest stockpiles of rare earth elements and uranium, totalling 956 million tonnes. Broken down this represents 575 million pounds of U3O8, 10.33 million tonnes of total rare earth oxides and 2.25 million tonnes of zinc.
Proceeds from the fully underwritten renounceable rights issue will be drawn together with existing cash reserves of around $5.1 million (correct on March 31 2014) to finalise major components of the mining licence application.
Environmental and Social Impact Assessments, engineering design work and updated cost estimates need to be carried out on top of the need to improve the quality of mineral resources and establish measured resources.
GGG will also carry on dialogue with important development allies which include China Non-Ferrous Metal Co (NFC), with whom it has signed a memorandum and understanding. The offer put forward by the Greenland company has also received interest from Danish pension funds.
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