Greenland Minerals seeks $33m

Perth-based Greenland Minerals has launched a $33 million capital raising to fund the development of its flagship rare earths project.

The company is planning to finalise licences and permits for its Kvanefjeld project in Greenland, which it says is the largest undeveloped rare earths project globally.

Funds will also go towards a definitive feasibility study, as well as advancing offtake agreements, project funding discussions and pre-development work.

Managing director John Mair said Greenland had received strong support for the capital raising.

“The Kvanefjeld rare earth project is globally unique in terms of scale and favourable metallurgy, combined with large, low‐cost output of all critical magnet rare earths… and has Greenland well‐positioned to be a cornerstone to future international rare earth supply,” Mr Mair said.

“The capital raising comes on the back of important permitting milestones, and will allow us to accelerate all pre‐development work programs at a pivotal time with the demand for rare earths set to surge substantially through the coming years, creating an optimal development window.”

Greenland will issue 125 million shares priced at 24 cents each to raise $30 million.

The placement is being led by Canaccord Genuity, also acting as bookrunner. CPS Capital Group and Ashanti Capital are acting as co-lead managers.

Greenland is seeking to raise a further $3 million from a share purchase plan, also priced at 24 cents.

Shares in Greenland closed down 10.3 per cent to trade at 26 cents.