Greenland Mines (NASDAQ: GRML) said Friday that the Government of Greenland, through the Ministry of Business and Mineral Resources (Naalakkersuisut), has formally approved the indirect transfer of Mineral Exploration License covering the Sarfartoq carbonatite complex to the company. The stock surged.
The approval, granted under the Greenland Mineral Activities Act, satisfies one of the key regulatory closing conditions for the company’s acquisition of the Sarfartoq project from Neo Performance Materials for $35 million.
As part of the deal, Neo Performance will receive offtake rights on up to 60% of future ore or mineral concentrate production from Sarfartoq.
The company has called the project one of the island’s “most advanced and compelling rare earth projects,” citing its high-grade nature and favorable Arctic logistics.
Located roughly 60 km from Kangerlussuaq in the southeast, the project is the site of a carbonatite-hosted deposit strongly enriched in Neodymium-Praseodymium (Nd-Pr).
The project carries a historic NI 43-101 Mineral Resource Estimate and a Preliminary Economic Assessment, is supported by more than 15 years of exploration work and over 23,000 meters of drilling,
A historic resource cited by the company showed that it contains roughly 27 million kg of Nd oxides and 8 million kg of Pr oxides, concentrated within one zone holding 5.88 million tonnes of indicated material grading 1.77% TREO (total rare earth oxides) and 2.46 million tonnes inferred grading 1.59% TREO.
“This approval from the Government of Greenland is a fundamental milestone for our company and for the future of Sarfartoq,” Greenland Mines president Bo Møller Stensgaard said in a news release.
“It reflects the strength of our relationships in Greenland and the confidence the Government places in our team to advance this project responsibly,” Stensgaard said. “Sarfartoq is one of the most important undeveloped neodymium-praseodymium resources in the Western world. This is a foundational step in building a genuine, Western-aligned rare earth supply chain from Greenland.”
Greenland Mines stock surged on the news, closing the day up over 22% on the NASDAQ. The company has a $31.4 million market capitalization.
