TORONTO–( BUSINESS WIRE )–Greenland Resources Inc . (Cboe CA: MOLY | FSE: M0LY) (Greenland Resources or the Company) is pleased to announce that in accordance with its press releases dated April 2 and June 11, 2024, the Company has now received a draft mining permit.
This announcement contains multimedia. See the full press release here: https://www.businesswire.com/news/home/20250120057773/en/
Background
- On December 9, 2019, the company submitted the ToR EIA/SIA to the Government of Greenland (Naalakkersuisut). Both documents are required to obtain a permit for exploitation according to the new Law.
- From 18 January to 22 February 2021, the ToR EIA/SIA were subject to a public consultation process and were approved by the Government of Greenland on 29 September 2022.
- On January 10, 2024, the Company submitted an application for the issuance of a license for exploitation based on the new Mining Act. The exploitation permit replaces the exploration permit.
- On May 30, 2024, the Company received a letter from the regulator stating that the application for exploitation meets all the conditions for submission and that an exploitation plan will be issued. The letter also sought proof of certain capitalization requirements and proof that the management of the Greenlandic subsidiary would be based in Greenland once the mining license was issued.
- On June 6, 2024, the Company submitted a plan requesting up to two years of exemption from meeting the local domicile management requirement pursuant to Sec. 45th century 2 of the Mining Act and on December 16, 2024, and the exemption was approved.
- On December 16, 2024, the Company received a letter from the Government of Greenland (Naalakkersuisut) stating that proof of capitalization requirements in accordance with Sec. 46, paragraph 3 of the Law on Mining.
- On January 19, 2025, the Company received the draft exploitation permit as well as comments for further discussion.
Further updates will be provided in due course.
Greenland Resources Inc.
Greenland Resources is a Canadian public company with the Ontario Securities Commission as its primary regulator and is focused on developing a 100% owned primary Climax type molybdenum deposit located in central east Greenland. The project also has magnesium, a market that China dominates by 98%. The Malmbjerg molybdenum project is an open pit mine with an environmentally friendly mine design focused on reduced water use, low water disturbance and a small footprint thanks to a modularized infrastructure. The Malmbjerg project benefits from an NI 43-101 definitive feasibility study completed by it Tetra Tech (NASDAQ: ) in 2022, with capex of $820 million and an after-tax IRR of 33.8% and a payback of 2.4 years, using a molybdenum price of $18 per pound. Proved and probable reserves are 245 million tons at 0.176% MoS2, for 571 million pounds of contained metallic molybdenum. Because high-grade molybdenum is extracted in the first half of the mine’s life, the average annual production in years one to ten is 32.8 million pounds per year of contained molybdenum at an average grade of 0.23% MoS2, approximately 25% of the EU’s total annual consumption. The project had a previous mining license issued in 2009. With offices in Toronto, the company is led by a management team with extensive experience in the mining industry and capital markets. For additional details, see our website (www.greenlandresources.ca) and our Canadian regulatory filings on the Greenland Resources company profile at www.sedarplus.com.
The project is supported by the European Raw Materials Alliance (ERMA). ERMA is managed by EIT RawMaterials, an organization within EIT, a body of the European Union.
About molybdenum and the European Union
Molybdenum is a key metal mainly used in steel and chemicals that is needed in all technologies in the upcoming green energy transition. When added to steel and cast iron, it increases strength, hardenability, weldability, toughness, temperature strength and corrosion resistance. Based on data from the International Molybdenum Association and the European Commission’s Steel Report, the world produced about 576 million pounds of molybdenum in 2021, with the European Union (EU) as the world’s second largest steel producer using approximately 24% of global molybdenum supply and no domestic production of molybdenum. To a greater extent, steel-dependent industries in the EU, such as automotive, construction and engineering, represent around 18% of the EU’s GDP of ‰ˆ 16 trillion USD. Greenland Resources’ strategically located molybdenum project in Malmbjerg has the potential to supply the EU and the EU with approximately 25% of the EU’s consumption of environmentally friendly, high quality molybdenum from a responsible EU associated country, for decades to come. The high quality of Malmbjerg ore, with its low content of impurities in phosphorus, tin, antimony and arsenic, makes it an ideal source of molybdenum for the high-performance steel industry, which is led in the world by Europe, especially the Scandinavian countries and Germany.
Forward-looking statements
This release contains “forward-looking information” (also referred to as “forward-looking statements”) that relate to future events or future performance and reflect management’s current expectations and assumptions. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “hopes,” “expects,” “anticipates,” “budget,” “planned,” “estimates,” “forecasts”, “intends”, “anticipates” or “believes” or variations (including negative variations) of such words and expressions, or states that certain actions, events or results “may”, “might”, “would”, “could ” or “will” be undertaken, happen or achieve. Such forward-looking statements reflect management’s current beliefs and are based on assumptions and information currently available to the Company. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this press release relate to, among other things: the Company’s goals, objectives or future plans; issuing a final permit for exploitation under conditions that are acceptable or at all; planned capital funding and due diligence results; construction and engineering initiatives for the Malmbjerg molybdenum project; statements, exploration results, potential mineralization, estimation of mineral resources and reserves, and their valuation, mine exploration and development plans, timing of commencement of operations and assessment of market conditions.
These forward-looking statements and information reflect the Company’s current views with respect to future events and are necessarily based on a number of assumptions that, while reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. . These assumptions include: not accepting a final exploitation permit under acceptable terms or at all; future planned development and other activities on the Project; favorable outcomes of due diligence review; planned energy needs of the Project; obtaining a permit for the project in a timely manner; there are no negative changes in the planned operations of the Project; continuous favorable relations with local communities; current EU and other initiatives that remain in place in the future; expected demand for molybdenum in the EU and abroad, including companies that have expressed interest in purchasing molybdenum; our mineral reserve estimates and the assumptions on which they are based, including geotechnical and metallurgical rock characteristics that confirm sampling results and metallurgical performance; tonnage of ore to be mined and processed; ore content and exploitation; assumptions and discount rates appropriately applied to technical studies; the estimated value and probability of success of the Company’s projects, including the Malmbjerg molybdenum project; prices for molybdenum remain under assessment; foreign exchange rates remaining as estimated; availability of funds for the Company’s projects; capital assessments of decommissioning and reclamation; estimates of mineral reserves and resources and the assumptions on which they are based; input prices of energy, labor, materials, supplies and services (including transportation); no work-related disturbances; there are no unplanned delays or interruptions of planned construction and production; all necessary permits, licenses and regulatory approvals have been received on time or at all; and the ability to comply with environmental, health and safety laws. The above list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that could cause actual results and developments to differ materially from those expressed or implied by such statements or information contained in this press release and The Company has made assumptions and estimates based on or in connection with many of these factors. Such factors include, without limitation: favorable SIA (Social Impact Assessment) and EIA (Environmental Impact Assessment) results; favorable support of the local community for the development of the Project; forecast demand for molybdenum in the EU and elsewhere, including companies that have expressed an interest in purchasing molybdenum; current initiatives and programs for resource development in the EU and abroad; predicted and actual status of supply chains, labor market, currency and commodity prices, interest rates and inflation; predicted and actual state of global and Canadian capital markets, molybdenum fluctuations and commodity prices; fluctuations in input prices of energy, labor, materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian dollar versus the US dollar versus the euro); operational risks and hazards inherent in mining operations (including environmental accidents and hazards, industrial accidents, equipment failure, unusual or unexpected geological or structural formations, collapses, floods and severe weather); inadequate insurance or inability to obtain insurance to cover these risks and dangers; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in Greenland, including environmental, export and import laws and regulations; legal restrictions on mining; risks related to expropriation; increased competition in the mining industry for equipment and skilled personnel; availability of additional capital; ownership issues and additional risks identified in our filings with Canadian securities regulators on SEDAR+ in Canada (available at www.sedarplus.ca). Although the company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as expected, estimated, described or intended. Investors are cautioned against placing undue reliance on forward-looking statements or information. These forward-looking statements are made as of the date hereof and, except as required by applicable securities regulations, the Company does not intend and undertakes no obligation to update forward-looking information. Neither Cboe Canada Exchange nor its regulatory service provider accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory body has approved or disapproved of the information contained herein.
See the original version on businesswire.com: https://www.businesswire.com/news/home/20250120057773/en/
For additional information, please contact:
Ph.D. sc. Reuben Shiffman
Chairman, president
Keith Minty, P.Eng, MBA
Engineering and project management
Jim Steel, P.Geo, MBA
Exploration and Mining Geology
Nauja Bianco, mag.pol.sci.
Public and community relations
Gary Anstey
Investor relations
Eric Grossman, CPA, CGA
Chief Financial Officer
Business office
Suite 1810, 25 York Street, Toronto, Ontario, Canada M5J 2V5
Phone 1-844-252-0532
Email info@greenlandresourcesinc.com
Web www.greenlandresources.ca
Source: Greenland Resources Inc.
