PERTH (miningweekly.com) – Australia’s Ram Resources agreed to buy the Motzfeldt project in Greenland, the company announced on Wednesday.

Ram would acquire the tantalum and niobium project by buying 100% of UK-based Greenland Resources’ (GRL’s) issued capital.

The Motzfeldt project is a multielement-style deposit that is primarily being targeted for tantalum, niobium, and rare earth elements (REE), though zircon, uranium and thorium are also present in the mineralised zone.

Ram said in a statement that it had commissioned SRK Exploration Services to carry out a review of the exploration work done to date.

It would also start a drill test of most promising targets in the first field season, which stretches from June to October, with the aim of establishing an initial Joint Ore Reserve Committee-compliant resource.

Ram noted that previous work had focused mainly on tantalum and niobium, but that it would seek to also understand the REE potential of the deposit.

Tantalum is used in the electronics and aerospace markets, while niobium is used as an alloying addition to steel in the form of ferroniobium.

GREENLAND RESOURCES DEAL

Ram would buy an initial 51% interest in GRL through the issue of 280-million ordinary fully paid shares and a further 280-million options, each with an exercise price of 3c an option.

Following the completion of the acquisition of the initial interest, Ram would have the option of acquiring a further 19% of the issued capital of GRL by paying to the vendor A$1-million in cash within three years, and by providing sole funding of A$10-million of expenditure.

Ram could increase its shareholding to 90%, by paying a further A$2-million in cash and providing sole funding of A$15-million for expenditure.

To acquire the outstanding 10% interest, Ram would have to pay A$50-million and where the value of the final interest exceeds A$50-million, a 25% of the outstanding amount.

The memorandum of understanding was subject to the satisfactory completion of a due diligence by Ram by the end of April.

Ram Resources has exploration properties located in the Pilbara region of Western Australia, which are prospective for base metals, uranium and gold.