Greenland Resources has entered into a subscription agreement for a private placement financing with investment funds advised by Maj Invest, one of Denmark’s leading asset management companies.

Under the terms of the private placement, Greenland Resources will issue about 4.22 million common shares at a price of C$0.71 per share to raise gross proceeds of C$3 million. Part of the net proceeds will be used to advance the capex and permitting of its Malmbjerg molybdenum project.

Malmbjerg is an open pit operation hosting an environmentally friendly mine located in east-central Greenland, approximately 30 km off the coast. Its design focuses on reduced water usage, low aquatic disturbance and low footprint using a modularized infrastructure.

The project benefits from an NI 43-101 definitive feasibility study completed by Tetra Tech in 2022, anchored by proven and probable reserves of 245 million tonnes at 0.176% MoS2, for 571 million pounds of contained molybdenum metal.

Using an $18/lb molybdenum price as the base case, the project’s after-tax net present value (at a 6% discount rate) is calculated at $1.17 billion, with an internal rate of return of 22.4%. Its payback period is 2.4 years.

As the high-grade molybdenum is mined for the first half of the 20-year mine life, the average annual production for years 1-10 is 32.8 million lb. per year of contained molybdenum metal at an average grade of 0.23% MoS2.

The project had a previous exploitation license granted in 2009.