Agreement To Acquire an Interest in a Lithium Project

Greenland Minerals Limited (the Company or Greenland) (ASX: GGG) is pleased to announce that it has entered into a binding heads of agreement with Technology Metals Europe SL (TME) and its sole shareholder Welsbach Holdings Pte Ltd (Welsbach), for the right to earn-in a 51% interest in TME (Transaction).

TME is the sole owner of an exploration permit in Spain prospective for lithium (Tenement), known as the Villasrubias project.

Greenland can earn its interest in TME by spending AU$3,000,000 on a jointly agreed works program in relation to the Tenement within 3 years from the date of satisfaction (or waiver, if permitted) of the conditions precedent to the Transaction.

Welsbach is a related party of Greenland by virtue of being an entity controlled by Mr Daniel Mamadou, Managing Director of Greenland, one of three directors of Welsbach and owner of a controlling shareholding interest in Welsbach.

The Transaction remains conditional, including on completion of due diligence by Greenland on TME and its assets, including the Tenement, to the satisfaction of Greenland, and Greenland obtaining shareholder approval pursuant to ASX Listing Rule 10.1.

A notice of meeting, including an independent expert’s report assessing the fairness and reasonableness of the Transaction, will be distributed to shareholders in due course with the Company targeting a meeting date in September 2022.

A summary of the material terms of the HOA is set out in Annexure A.

Villasrubias project information - summary

The Villasrubias project consists of a permit of investigation (11.4 km2) acquired by Technology Metals Europe SL in 2021.

The main target is a set of lithium-tantalum-niobium-tin-bearing aplite-pegmatite dykes. Of these minerals, the first three are critical raw materials for the EU, according to the list updated in 2020.

Preliminary exploration works performed on the Villasrubias project include field reconnaissance, grab sampling, geophysics (VLF and tomography) and trenches (259 m), which has evidenced mineralized dykes along 370 m at least within a complex buried pegmatite field. Taking the values of the aplo-pegmatites with lepidolite, the average grade of the lithium carbonate deposit is 2.79%.

“With its rich tradition in mining and its strong presence in the European automotive market, Spain is ideal for the development of projects for critical technology metals supply chains. We are keen to support local efforts to fund the projects that are centred on the circular and green supply chains of technology materials, including lithium” said Ed Mason, Non-Executive Chairman of Greenland Minerals.

"The Villasrubias project represents a great example of untapped potential within the Iberian tin-lithium belt. Advances in extraction and refining technologies coupled with a secular demand growth in lithium demand makes the Villasrubias project attractive from a risk-return perspective” said Daniel Mamadou-Blanco, CEO of Greenland Minerals.

Property Description and Location

The Villasrubias project Tenement is a permit of investigation (Permiso de Investigación) Villasrubias number 6.914, which was originally granted in 2019 for a term of 3 years to SIEMCALSA (the Sociedad de Investigación y Explotación Minera de Castilla Y León SA, an entity sponsored by the regional government of Castilla y León). The Tenement covers an area of 11.4 km2 located across parts of the municipalities of Villasrubias, Robleda, Peñaparda and Fuenteguinaldo, all in the province of Salamanca. The Tenement authorises exploration for resources of lithium, tin, tantalum and niobium. The Tenement was acquired by Technology Metals Europe SL in 2021, the transfer was registered in March 2022 and its term was extended by the authority for a further three years in May 2022.

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Villasrubias project is located in the south-west corner of the province of Salamanca in Spain, close to the Portuguese border. It is approximately 33 km away from Ciudad Rodrigo, 120 kms from the city of Salamanca, and 250 kms on average from the main harbours in Portugal.

This article includes content from Greenland Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.