Proactive Investor's  Instablog

Greenland Minerals and Energy's (ASX: GGG) substantial shareholder Tracor Ltd has increased its stake in the company to a 5.6% interest following a placement.

Tracor purchased a further 11 million shares at $0.30 each for a total consideration of A$3.3 million in a recent $15 million capital raising that closed oversubscribed.

The funds raised from the placement were used to finalise Greenland's move to 100% ownership of the Kvanefjeld project, and for general working capital.

Importantly, the acquisition of the remaining 39% of the project was done at a substantial cost saving to shareholders than the original agreement.

The Kvanefjeld project is underpinned by several large‐scale, bulk‐tonnage resources at Kvanefjeld, Sørensen (Zone 2) and Zone 3.

The project has a resource inventory of 956 million tonnes containing 575 million pounds of uranium, 10.33 million tonnes of total rare earth oxides (TREO) and 2.25 million tonnes of zinc.

The TREO includes 0.37 million tonnes of heavy rare earth oxides and 0.84 million tonnes of yttrium oxide.

A Feasibility Study for Kvanefjeld project is currently underway and is scheduled for completion in 2013.

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