- Eclipse Metals (EPM) has entered an agreement to acquire full exploration tenure covering a 120-year-old cryolite deposit in Greenland
- Eclipse will acquire the Ivittuut Project in Southwest Greenland which is considered to be the only commercial cyrolite mine in the world
- The site has produced 3.8 million tonnes of cryolite, with historical exploration including 19,000 metres of diamond drillcore
- The explorer indicates it has received firm commitments for a share placement to raise $2 million at 0.015 cents per share in relation to the acquisition
- EPM anticipates scheduling exploration this year once a JORC resource estimate has been determined
- On the market, EPM shares have rocketed 33.3 per cent following the announcement and are trading at 2.4 cents each
Eclipse Metals (EPM) has entered an agreement to acquire full exploration tenure covering a 120-year-old cryolite deposit in Greenland.
The Ivittuut Project, situated near Cape Desolation in Southwest Greenland, is chronicled by EPM as the world’s only commercial cryolite mine, a mineral used to reduce energy consumption in aluminium production.
The deposit has produced 3.8 million tonnes of cryolite, with historical exploration including 19,000 metres of diamond drill core, according to a study by the Greenland Geology Survey Department.
EPM anticipates scheduling exploration this year, which will be announced to the market in due course.
For now, next expected steps are detailed re-logging and sampling of the 19,000 metres of drill core stored in Greenland, which will then be sampled and assayed to prepare a JORC-compliant resource estimate.
Eclipse Metals Executive Chairman Carl Popal has described the acquisition as transformational.
“Ivittuut is unique in so many ways; not only as the world’s only cryolite mine with huge potential for multicommodity deposits next to a historical port but also as a source of highly sought after heavy rare earth minerals,” he explained.
“EPM is now well-positioned not only to deliver increasing value for our shareholders by being able to achieve cost-effective results from assay of the 19,000m of drill core presently in storage but also delineating short term opportunities in the highly sought after REE sector,” he added.
The acquisition
Eclipse is acquiring the mine from Cerium, Rimbal, and Greg Barnes for a consideration of cash and shares, with an initial consideration of $50,000.
EPM also indicates it has received firm commitments for a 133,333,334 share placement to raise $2 million at 0.015 cents per share.
Pursuant to the agreement, Eclipse is also tied to a number of milestone payments to Cerium.
The first is a $1 million cash payment following the confirmation of a mineral resource, concluding with a $9 million following the first definitive feasibility study and a mining licence from Greenland Government has been granted.
Eclipse will also need to cough up a 3.5 per cent net profit royalty payment to Cerium on any mineral product recovered and sold from the tenement.
EPM anticipates scheduling exploration this year, which will be announced to the market in due course.
On the market, EPM shares have rocketed 33.3 per cent following the announcement and are trading at 2.4 cents each at 1:25 pm AEDT.