PDA

View Full Version : Greenland Minerals and Energy (ASX: GGG) secures A$21 million


Sparty
07-08-2010, 08:39 AM
Thursday, July 08, 2010
Greenland Minerals and Energy cracks A$21m in financing for Kvanefjeld development

by Proactive Investors (http://www.proactiveinvestors.com.au/about_us)
Greenland Minerals and Energy (ASX: GGG) has managed to secure A$21 million in financing for the Kvanefjeld project, despite the challenging capital markets, via a A$6 million placement of 17,647,060 shares at $0.34 to sophisticated and institutional investors and a A$15 million equity facility with US based YA Global Investments.


The funding will support an ongoing feasibility study and development programs on the Kvanefjeld Multi Element (rare earth elements, zinc, and uranium) Project in Greenland.


The equity facility has been established with YA Global Investments (Yorkville) that provides Greenland with the option to draw down on a $15 million facility at any time over the next five years.


The company's 2010 work program commenced in June, including infill drilling at Kvanefjeld with the goal of converting Inferred Resources to the higher Indicated category, enabling the resources to be included in mine plans.
A new prospective region discovered at Kvanefjeld, 6km to the south, Zone 2 is currently being drilled and the company has hopes that it could unearth a significant discovery based on the area being underlain by naujaite and lujavrite, the host to multi-element ores at Kvanefjeld.
Metallurgical testwork and metallurgical studies will also be undertaken in H2 2010 to progress the flowsheet prior to the commencement of a definitive study.


The company will move out of a voluntary suspension as a result of the capital raising immediately.

http://www.australianrareearths.com/images/alk.gif

shenzhou
02-15-2011, 05:59 AM
Can someone do a compartive list between RAM RESOURCES LIMITED (RMR) and GGG? Why is GGG sp over $1 and RMR at just 2c?

Anyway... I'm afraid a semi-analytical article is showing a company like RMR in a very depressive mode as far as REEs production is concerned. (What about GGG, since it has the same Greenland prohibitive law concerning radioactive mining?

Quotes:

"There's probably room in this space for no more than five or six projects outside of China," said Hykawy, who said investors need to be picky about which projects they back.

But in 2011, investors are increasingly dropping the long-shots and buying into projects that at least have a good chance of crossing the finish line.

End quote:

So can RMR and "Greenland"(but will the local greenland gov ever want to?) cross the finish line(production)?

Source:http://www.cnbc.com/id/41591113

Sparty
02-15-2011, 07:58 AM
Hello Shenzou,
Re GGG and RMR.

It is difficult to compare the two as GGG is at a much more advanced stage and has a published JORC resource. Whereas RMR has results for a few drill holes.

We cannot as yet do the simplest comparison valuations by comparing the Resources/EV or Resources/Market cap.

What we can say is that GGG has a decent market cap, a fair amount of cash and the world's largest JORC REE resource with a healthy dash of Heavy REEs in the mix. GGG can also produce its uranium at ~ $20 per pound and that would allow it to mine its REEs at zero cost.

As you say the politics of uranium mining are a factor but having watched Greenland's policy over the last few years I think we can conclude that they Greenland will most likely allow it.

As for an over-supply of REEs surfacing in the near future that is wishful thinking.... even out to the end of the next decade we are likely to see shortages of some of the heavy REEs...

I have put together quite a lot of information on these two pages...

http://www.australianrareearths.com/Known-REEs-resources-reserves

http://www.australianrareearths.com/current-issues.html (http://www.australianrareearths.com/current-issues.html)

Have a read and then we can discuss the outstanding issues.