Shares in Greenland Minerals and Energy spiked by 20 per cent after the Perth-based explorer announced it had finalised an agreement to acquire the remaining stake it does not already own in its flagship project in Greenland.
Greenland said it had come to terms on an agreement with Westrip Holdings and Rimbal to acquire the outstanding 39 per cent interest in the northern Ilimaussaq Complex in Greenland, which contains the world’s largest JORC-compliant rare earth oxide resource, Kvanefjeld.
In return for the stake in the project, Greenland will pay Westrip $39 million in cash, $7.8 million in shares and 5 million options.
The company said initial studies had indicated the Kvanefjeld deposit could be developed into a large-scale multi-commodity operation with one of the world’s largest rare earths production capacities.
“100 per cent ownership will place (Greenland) in a strong position to engage potential strategic parents looking to gain access to the extensive resource base and facilitate its development,” Greenland said in a statement.
By close of trade today, Greenland’s stock was up 20 per cent to 63 cents.
