Greenland Minerals and Energy (ASX: GGG) is targeting to add an initial resource at Zones 2 and 3 at the Kvanefjeld multi‐element project in Greenland, to the 619 Mt JORC Resource.
The current JORC contains 6.6 million tonnes total rare earth oxides (TREO), 350 million pounds U3O8, and 3 billion pounds of zinc.
A major focus of the 15,000 metre current drilling program is to generate sufficient data to establish initial resource estimates on Zones 2 and 3, both located within the broader northern Ilimaussaq project area.
Highlighting the continued increasing potential of the project, the company said that initial multi‐element resource estimates on the zones are anticipated to increase the overall resource base substantially.
Greenland Minerals continues to progress Kvanefjeld, and earlier in the month in a pivotal deal, the company announced a buy out of the 39% minority interest for just A$39m cash, along with 8.125 million shares and 5 million options.
The company making deal therefore provides Greenland Minerals with full control over the largest known occurrence of rare earths.
It is understood that Greenland Minerals is currently evaluating alternative financing proposals to mop up the remaining interest in the project -with a window of 150 days to finalise these.
The deal to take out the minority partner allows Greenland Minerals to acquire the 39% minority holding and move to 100% of Kvanefjeld for just $39 million cash.
It is a significant step for Greenland Minerals and also removes uncertainty as to whether Westrip, or Rimbal, the private company of Barnes, held the rights to the minority share of the joint venture.
It also removes legal claims from of the picture.
Strategically, it allows Greenland Minerals to own 100% of the Kvanefjeld project - unfettered - and in a way that can unlock greater value for Greenland Minerals shareholders.
This outcome, for the entire 100% of the Kvanfeld project that has a resource of 6.6 million tonnes TREO, 350 million pounds of uranium and 3 billion pounds of zinc at a cost of $39 million, yet Greenland Minerals is itself still valued at a miserly $224 million.