- Shares in Greenland Minerals (GGG) faltered yesterday after a key approval for its Kvanefjeld rare earth project in Greenland failed to materialise on schedule
- The company is currently awaiting the results of the project’s environmental impact assessment, which was lodged in May of this year and was due to be completed by August 26
- When no announcement was made leading up to this date, Greenland Minerals’ share price began to waver, falling more than 18 per cent in two days to an intra-day low of 22 cents per share
- However, in an announcement released late in trading yesterday, the company assured investors that the assessment was nearing completion and was now expected by mid-September
- Greenland Minerals closed 7.69 per cent in the red for 24 cents per share
Shares in Greenland Minerals (GGG) faltered yesterday after a key approval for its Kvanefjeld rare earth project in Greenland failed to materialise on schedule.
The company is currently awaiting the results of an environmental impact assessment for project, which was lodged in May of this year and was due to be completed by August 26.
When no announcement was made leading up to this date, Greenland Minerals’ share price began to falter, falling more than 18 per cent in two days to an intra-day trading low of 22 cents per share.
The company finally spoke out about the delay late into trading on August 27, assuring investors that the assessment was near completion and was expected by mid-September.
The assessment is currently being processed by Greenland’s Environmental Agency for Mineral Resources, which notified the company that the delay is not the result of any unexpected issues with the application.
Despite the delay the company has already reached a number of milestones for the project, which, if approved, would make it a globally significant producer of rare earth elements such as neodymium, praseodymium, terbium and dysprosium.
Greenland Minerals recently received approval for its mineral resource and feasibility reports from the Ministry of Mineral Resources and Labour, marking another step towards start-up. The project’s momentum began to gather investor attention in mid-March, sparking an impressive share price upsurge, given the difficult macro-environment at the time.
After posting a 52-week low of seven cents on Match 19, the company’s share price reached 30 cents per share earlier this month, before wavering in the last few days.
Greenland Minerals closed 7.69 per cent in the red for 24 cents per share.