Greenland raises A$7m for Kvanefjeld
PERTH (miningweekly.com) – ASX-listed Greenland Minerals has raised A$7-million through a share placement to institutional investors to progress the ongoing technical development of its Kvanefjeld rare earths project, in Greenland.
The company has received firm commitments for the placement of more than 58.33-million shares, which will be placed at a price of 12c each, representing a discount of 20% on Greenland’s 20-day volume weighted average share price up to July 26.
The placement will be conducted under the company’s existing capacity, and will not require shareholder approval.
In addition to advancing the technical development of the Kvanefjeld project, the funds raised will also be used to progress the mining licence application through public consultation and impact benefit agreement negotiations, while also funding the continued development of downstream processing and path to market strategy, as well as project commercialisation.
The share placement follows on from the feasibility optimisation programme, which resulted in a 40% decrease in both the capital and operating cost estimates for Kvanefjeld.
The Kvanefjeld project is expected to cost some $505-million to develop and is expected to produce 32 000 t/y of rare earth oxide over an initial mine life of 37 years, based on a 108-million-tonne ore reserve.
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