The Government of Greenland has approved the indirect transfer of the exploration license covering the Sarfartoq rare earths project to Greenland Mines Ltd., clearing a major condition for the company’s proposed $35 million acquisition.
Greenland Mines announced Friday that the Ministry of Business and Mineral Resources had approved the transfer of Mineral Exploration License MEL 2020-32 under Greenland’s Mineral Activities Act.
The license covers the Sarfartoq Carbonatite Complex in southwest Greenland, approximately 37 miles from Kangerlussuaq.
Greenland Mines agreed in May to acquire Neo North Star Resources Inc., the company holding the license, from shareholders including Neo Performance Materials. The purchase price consists of $20 million in cash and $15 million in Greenland Mines shares.
Sarfartoq is primarily associated with neodymium and praseodymium, two rare earth elements used in permanent magnets for electric vehicles, wind turbines, robotics and defense equipment. The property has undergone more than 15 years of exploration and includes an established field camp, two drill rigs and environmental baseline work.
In its latest quarterly filing, Greenland Mines said additional financing would be required to fund the acquisition’s $20 million cash payment.
Greenland Mines Chief Financial Officer Jeff LeBlanc told GreenlandEnergy.com: “The company expects to close the acquisition in time for the September campaign, which is scheduled and on track.”
Closing the acquisition would make Sarfartoq Greenland Mines’ second major project in Greenland, alongside Skaergaardin East Greenland.
GreenlandEnergy.com provides independent analysis of Greenland’s energy landscape, critical minerals development, and Arctic geopolitics. For corrections or feedback: press@greenlandenergy.com
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