- Greenland Minerals (GGG) has received firm commitments to undertake a $30 million share placement
- All up, 125 million new fully-paid ordinary shares will be issued to institutional, sophisticated and professional investors at 24 cents
- Greenland will also undertake a non-underwritten share purchase plan (SPP) to raise an additional $3 million
- Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will also be priced at 24 cents
- GGG will use the money from both the placement and SPP to accelerate work programs at the Kvanefjeld rare earth project in Greenland
- This project is prospective for materials which are used in the production of electric vehicles
- Greenland has dropped 12.1 per cent on the market, with shares trading at 25.5 cents
Greenland Minerals (GGG) has received firm commitments to undertake a $30 million share placement.
All up, 125 million new fully-paid ordinary shares will be issued to institutional, sophisticated and professional investors at 24 cents.
New shares are expected to settle on Wednesday, December 2.
Canaccord Genuity acted as Sole Lead Manager and Bookrunner, while CPS Capital Group and Ashanti Capital acted as Co-Lead Managers.
Greenland will also be undertaking a non-underwritten share purchase plan (SPP) to raise an additional $3 million, however, the company may accept applications totalling more or less than this amount.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will also be priced at 24 cents.
The SPP will open on December 1, close on December 15, and shares will be issued on December 21.
GGG will use the money from both the placement and SPP to accelerate work programs at the Kvanefjeld rare earth project in Greenland.
The Kvanefjeld project hosts rare earth elements such as neodymium, praseodymium, terbium and dysprosium, all of which are used in the production of electric vehicles.
“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,” Managing Director Dr John 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,” he added.
Greenland has dropped 12.1 per cent on the market, with shares trading at 25.5 cents at 11:21 am AEDT.