Eclipse Metals acquires Greenland mine

Perth-based exploration company Eclipse Metals has acquired thr Ivittuut mine in southwestern Greenland, the world’s only commercial cryolite mine, through a cash and scrip deal.

Eclipse has acquired ownership of an exploration tenure covering the Ivittuut mine and Gronnedal-aka carbonatite deposit from Greg Barnes and Australia-based companies Cerium and Rimbal.

Cerium is an exploration company, whereas Rimbal is a mineral service company that is owned by the Barnes Family Trust.

Eclipse will also have access to nearby port facilities and past exploration data, including 19,000m of drill core taken from the bottom of the Ivittuut site.

Several historical geological surveys taken at Ivittuut indicate the presence of quartz, siderite, fluoride, sphalerite and a second pure cryolite zone within 40-80 metres below the bottom of the pit. However, Eclipse has yet to have the previous owner’s exploration results validated.

Ivittuut is the only commercial natural cryolite mine but was closed in 1987 when its deposit was thought to have been exhausted.

Cryolite is predominantly used as a solvent for aluminium ore, a process that reduces the cost of aluminium extraction. The mineral is also used in a number of other production processes.

The Gronnedal site also contains various rare earth elements and a carbonatite body roughly 2 kilometres by 1km.

Rare earth elements have a range of uses including the manufacturing of batteries, electronics, magnets and catalytic convertors. Carbonatite is source of carbonate minerals which can be used to neutralise acidic water produced from mining and other processes.

Eclipse Metals executive chairman Carl Popal said that this deal was a huge leap forward for the company and fit their mission of supplying producers of green energy.

“This transformational 100 per cent acquisition has multi-facet commercial potential for Eclipse,” he said.

“In the short run, having substantial high purity quartz (silica) still within the pit area puts the company in a position to potentially be a near term supplier to the electronic, solar, optical and silicon metal industry”

Upon initial completion of the agreement, Eclipse will pay $50,000 to Cerium. From second completion, Eclipse will grant Cerium a 3.5 per cent net profit royalty on mineral product recovered from the mines.

The agreement also includes a number of other cash payments, issuance of shares and options, and several milestone payments to Cerium.

Eclipse has also completed a placement of shares at a total value of $2,000,000 at 1.5 cents per share.

Eclipse plans to undertake further resource estimation, which will include the re-logging and sampling of the 19,000 metres of drill core stored in Greenland.

The company is planning an exploration programme to be undertaken this year with details announced at a later date.

Mr Popal also reiterated that the company remains committed to delivering results on its existing Australian portfolio of uranium, gold, palladium, vanadium and manganese prospects.