Australian rare earth company Greenland Minerals is trying to raise AU$7 million for its Kvanefjeld project in Greenland.
Australian rare earth company Greenland Minerals (ASX:GGG,OTC PINK:GDLNF) has announced it will launch a share placement to Australian institutional investors to raise AU$7 million.
As quoted from the press release:
The Kvanefjeld Project is underpinned by a JORC-code compliant resource of >1 billion tonnes, and an ore reserve estimate of 108 million tonnes to sustain an initial 37-year mine life. It is projected to be one of the largest global producers of key magnet metals including neodymium, praseodymium, dysprosium and terbium. Kvanefjeld offers a new, simpler path to rare earth production than traditional refractory sources. Kvanefjeld is one of a small number of advanced rare earth projects globally.
The successful capital raise follows the completion of a highly successful feasibility optimisation program that resulted in a 40 percent reduction in both the capital and operating cost estimates. These outcomes have Kvanefjeld positioned with the lowest capital intensity, lowest unit costs of production and longest mine life of emerging ASX-listed rare earth projects. Metallurgical optimisation was guided by leading rare earth company and GML’s major shareholder Shenghe Resources Holding Co Ltd.
Ashanti Capital acted as Lead Manager of the Placement.
Completion of Capital Raise The Company received firm commitments for 58,333,333 shares, which will raise AU$7.0 million before costs. The placement was undertaken at an issue price of AU$0.12 per share, representing a 20% discount to the 20-day volume weighted average price of GML shares trading on the ASX up to 26th July 2019.