JOHANNESBURG (miningweekly.com) – Aim-listed FinnAust Mining will significantly increase its land position in Greenland through the proposed acquisition of mineral exploration company Avannaa.
The company has agreed to acquire the entire issued and to be issued share capital of Avannaa from Capricorn Oil, a subsidiary of Cairn Energy, for £500 000.
Two of Avannaa's projects, Disko and Kangerluarsuk, appear to have high-tonnage and high-grade base metal potential.
“These are rare geological characteristics not often seen in the copper/nickel/platinum-group element and zinc/lead/silver mineral spaces. These projects have been of interest for some time; however, as with all things, timing was crucial,” says CEO Roderick McIllree.
He adds that the acquisition further consolidates FinnAust's position in Greenland and sees the company add quality acreage to its Greenlandic portfolio, which already includes the Pituffik titanium project.
“Prior to Capricorn's involvement, mining houses such as Falconbridge and Vismand spent more than $50-million on these projects over multiple campaigns spanning more than three decades; therefore, FinnAust is now ideally positioned in Greenland with multiple large, high-grade polymetallic targets that are drill ready, as well as what we believe to be a revenue stream in the form of Pituffik,” he says.
McIllree states that the addition of these projects further consolidates FinnAust’s dominant position in Greenland's emerging minerals sector.
"In terms of strategy, FinnAust will maintain its immediate focus on advancing Pituffik, which is shaping up to be a globally significant titanium asset,” he says.