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
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