09:00 26 Oct 2016 Greenland Minerals and Energy Ltd's shares leap higher
Share
GGG's vision is to develop a stable, long-term source of materials for clean energy generation and energy efficient technologies.
Greenland Minerals and Energy Ltd's shares leap higher
GGG's shares have jumped higher.
Greenland Minerals and Energy Ltd (ASX:GGG) has received an ASX Price Query after the company's shares hit $0.085 intra-day yesterday, which is 18% higher than Monday's close.
GGG responded that it was not aware of any reason for the trading.
The company did note:
"On the 23th September, the company announced to the ASX details of a proposed share placement and development of a strategic relationship with Shenghe Resources Holding Ltd (Shenghe).
"Shenghe is listed on the Shanghai Stock Exchange and is a leading rare earth company with experience in all parts of the rare earth industrial chain.
"The rare earth sector, by virtue of the extended industrial chain, almost necessitates that the mining end requires integration with strong downstream processing proficiency to create a strong business.
"Shenghe’s proficiency across all aspects of the rare earth industrial chain, combined with an international growth strategy, potentially make it an ideal industrial/strategic partner for the company’s Kvanefjeld Project (rare earths, uranium, zinc).
"Given that the Kvanefjeld Project is currently progressing through the permitting phase, from a timing perspective it has been important to identify an industrial partner with the ability to potentially assist in establishing a path to market, and ultimately to facilitate project development.
"Since making the announcement on September 23, the company has received increased interest and coverage from brokers."
Background
GGG's vision is to develop a stable, long-term source of materials for clean energy generation and energy efficient technologies.
Kvanefjeld is one of the world's most advanced rare earth and uranium projects with defined JORC compliant resources of over 1 billion tonnes containing 11.1 million tonnes of rare earth oxide and 593 million pounds of uranium.
As per the updated feasibility study, the net present value of the project is US$1.59 billion and the internal rate of return is 43.4%.
Project financing costs are US$831.9 million and the project has a payback period of 5 years.
