PERTH (miningweekly.com) - Rare-earth developer Greenland Minerals and Energy has taken full ownership of the Kvanefjeld multi-element project, in Greenland.
The company on Tuesday reported that it had acquired the outstanding 39% of the project from vendor Rimbal for a cash payment of A$5-million as well as the issue of more than 74.8-million shares and more than 4.9-million options, exercisable at 75c a share.
It added that achieving full ownership of the Kvanefjeld project was a key milestone for the company.
A prefeasibility study conducted earlier this year found that the Kvanefjeld project would require a capital investment of some $1.53-billion to deliver a 7.2-million-ton-a-year rare-earth element and uranium operation.
The project would produce some 2.6-million pounds a year of uranium oxide, as well as 4 200 t/y of heavy rare-earth hydroxide, 10 400 t/y of mixed rare-earth carbonate and 26 200 t/y of light rare-earth carbonate.
The project has an initial mine life of some 33 years, and construction was slated for 2014, with first production expected in 2016.