Greenland Minerals and Energy (ASX: GGG) shareholders have voted unanimously to approve two resolutions at the company's general meeting yesterday.
These resolutions include; 1. approval to acquire royalty; and 2. approval to issue shares to Hackleton Investments.
Towards the end of 2011, Greenland Minerals announced that the Government of Greenland is set to amend the terms of the company's exploration license in the country, with the company also looking to claw back a 3% royalty on license 2010/02 - which hosts the Kvanefjeld multi element project.
The agreement is with Greenland Minerals and Energy (Trading) A/S (GME A/S), and will comprise a consideration of 17.5 million shares.
GME A/S is the Greenlandic subsidiary company which holds the exploration license 2010/02 over the northern Ilimaussaq Intrusive Complex in Greenland that contains the world class Kvanefjeld project.
Highlighting the potential of Kvanefjeld, the project hosts the largest occurrence of rare earths (6.6 million tonnes total rare earth oxides (TREO)) as defined by internationally recognised standards, 350 million pounds uranium and 3 billion pounds of zinc.
GME A/S was established through the formation in 2007 of a joint venture with Westrip Holdings Limited (Westrip), and at the inception of the joint venture, a 5% net profit royalty existed on the license.
Once settlement occurs on the royalty and the move to 100% of GME A/S the joint venture will terminate and GMEL will control 100% GME A/S and be the beneficiary of a 3% net profit royalty.
Waiver granted for two ASX listing rules
Yesterday the ASX granted Greenland Minerals a waiver on two listing rules from the ASX, with the following a statement by the company relating to the waivers.
Waiver 1: listing rule 10.13.3
To the extent necessary to permit the company's notice of meeting seeking shareholder approval for the issue of 17,500,000 ordinary fully paid shares to Hackleton Investments Limited, to state the shares will be issued later than one month after the date of the shareholders' meeting.
The waiver is conditional on the notice of meeting stating the shares will be issued to Hackleton no later than 30 June 2012.
The meeting seeking shareholder approval for the issue of 17,500,000 shares to Hackleton, will be held today at 11:00am (NYSE:WST).
Waiver 2: listing rule 14.7
On the 13 December 2011 GMEL announced the details of an extension to the settlement of the agreement to move to 100% ownership of the Kvanefjeld multi-element project.
As a consequence of the settlement extension, GMEL has been granted a waiver from listing rule 14.7 to the extent necessary to permit the Company to issue to minority shareholders of Westrip Holdings Limited up to 7,825,000 fully paid ordinary shares and up to 5,000,000 options, later than 3 months after the general meeting of shareholders at which the issue of the Westrip Securities was approved.
The waiver is conditional on the Westrip Securities being issued no later than 15 June 2012 and otherwise on the same terms and conditions as approved by shareholders on 7 October 2011.
Greenland Minerals moving to 100% of Kvanefjeld
In August 2011 in a transformative move, Greenland Minerals completed a pivotal agreement with Westrip Holdings (and Rimbal Pty Ltd) to acquire the outstanding 39% of the exploration license 2010/02 over the northern Ilimaussaq Complex in Greenland.