Greenland Resources Provides Summer Update
Greenland Resources Inc. (NEO: MOLY | FSE: M0LY) ("Greenland Resources" or the "Company") is pleased to announce the Company's ongoing 2023 summer progress on its Malmbjerg Molybdenum Project (the "Project").
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Highlights:
- The Company continues to be very active with the process for debt and equity on capex financing with the banks that provided letters of intent as previously announced.
- Molybdenum remains one of the best performing metals this year where molybdenum prices quoted by the London Metal Exchange closed yesterday at US$24.97/lb Mo, nearly 40% higher than the base case price used in the Company's NI 43-101 Feasibility Study.
- The Company scheduled five trips to Greenland this summer. The first trip in July included a visit to the Project site from a global integrated mining company. WSP Denmark also joined the trip and conducted field work as part of comments received by the Environmental Agency for Mineral Resource Activities (EAMRA).
- During the second trip in August, a mini bulk sample of 200 kg was taken from historic core storage in Kangerlussuaq for further metallurgical testing in a saline process water environment. The third trip this week consists of the Company's financial advisors and their team visiting the Project site as part of the work required by the banks that have expressed written interest in financing the project capex. Draft reports for the banks are expected to be ready during the month of September.
- The fourth trip next week will include a visit to the Minister of Mineral Resources and meetings with EAMRA in Nuuk, to provide an update on the project permitting process. The fifth trip in early September is expected to include collecting additional saline and fresh water samples from the planned Noret tailings management facility in the Project area as part of the environmental studies.
- On July 12, 2023 the Company closed a financing with one of Denmark's leading asset management and private equity companies. Also on June 28, the Company, beyond legal obligations, expanded the scope of the financial sponsorship agreement to support the local community of Ittoqqortoormiit, the only nearby settlement.
- The Greenland government has invited the Company to present the Project in relation to the upcoming EU-Greenland strategic partnership on raw material value chains in an event to be held in October with the participation of the Greenland government and the European Commission.
- During the summer, the Company engaged the Danish international engineering and environmental consulting group COWI A/S on wind and solar energy alternatives. The study looks promising and could also help Ittoqqortoormiit. Currently, the Project is expected to require zero energy in nearly 45% of its operation due to the transport of the ore using gravity with an aerial rope conveyor, and the Company is committed to decarbonize at the same pace as end users.
- The Company is scheduled to attend the 35th International Molybdenum (IMOA) Annual General meeting September 3-8 in Santiago Chile and is expected to meet, among others, the metallurgical steel and chemical companies that have signed with the Company documentation related to offtakes.
About Greenland Resources Inc.
Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100% owned world-class Climax type pure molybdenum deposit located in central east Greenland. The Malmbjerg molybdenum project is an open pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from a NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with Proven and Probable Reserves of 245 million tonnes at 0.176% MoS2, for 571 million pounds of contained molybdenum metal. As the high-grade molybdenum is mined for the first half of the mine life, the average annual production for years one to ten is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2, approximately 25% of EU total yearly consumption. The project had a previous exploitation license granted in 2009. With offices in Toronto, the Company is led by a management team with an extensive track record in the mining industry and capital markets. For further details, please refer to our web site (www.greenlandresources.ca) and our Canadian regulatory filings on Greenland Resources' profile at www.sedar.com.
The Project is supported by the European Raw Materials Alliance (ERMA) as stated in their press release EIT/ERMA_June 13, 2022 Press Release, a Knowledge and Innovation Community of the European Institute of Innovation and Technology (EIT), a body of the European Union.
About Molybdenum and the European Union
Molybdenum is a critical metal used mainly in steel and chemicals that is needed in all technologies in the upcoming green energy transition (World Bank, 2020; IEA, 2021). When added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance. Based on data from the International Molybdenum Association and the European Commission Steel Report, the world produced around 576 million pounds of molybdenum in 2021 where the European Union ("EU") as the second largest steel producer in the world used approximately 24% of global molybdenum supply and has no domestic molybdenum production. To a greater degree, the EU steel dependent industries like the automotive, construction, and engineering, represent around 18% of the EU's ? US$16 trillion GDP. Greenland Resources strategically located Malmbjerg molybdenum project has the potential to supply in and for the EU approximately 25% of the EU consumption, of environmentally friendly high quality molybdenum from a responsible EU Associate country, for decades to come. The high quality of the Malmbjerg ore, having low impurity content in phosphorus, tin, antimony, and arsenic, makes it an ideal source of molybdenum for the high-performance steel industry lead worldwide by Europe, specifically the Scandinavian countries and Germany.
Forward Looking Statements
This news release contains "forward-looking information" (also referred to as "forward looking statements"), which relate to future events or future performance and reflect management's current expectations and assumptions. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "hopes", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: the Company's objectives, goals or future plans; construction and engineering initiatives for the Malmbjerg molybdenum project; statements, exploration results, potential mineralization, the estimation of mineral resources and reserves, and their valuation, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions.
These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: future planned exploration and other activities on the Project; planned energy requirements of the Project; obtaining the permitting on the Project in a timely manner; no adverse changes to the planned operations of the Project; continued favourable relationships with local communities; current EU and other initiatives remaining in place into the future; expected demand for molybdenum in the EU and abroad; our mineral reserve estimates and the assumptions upon which they are based, including geotechnical and metallurgical characteristics of rock confirming to sampled results and metallurgical performance; tonnage of ore to be mined and processed; ore grades and recoveries; assumptions and discount rates being appropriately applied to the technical studies; estimated valuation and probability of success of the Company's projects, including the Malmbjerg molybdenum project; prices for molybdenum remaining as estimated; currency exchange rates remaining as estimated; availability of funds for the Company's projects; capital decommissioning and reclamation estimates; mineral reserve and resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions; no unplanned delays or interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner or at all; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements and information include known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the favourable results of the SIA and EIA; favourable local community support for the Project's development; the projected demand for molybdenum both in the EU and elsewhere; the current initiatives and programs for resource development in the EU and abroad; the projected and actual effects of the COVID-19 coronavirus on the factors relevant to the business of the Corporation, including the effect on supply chains, labour market, currency and commodity prices and global and Canadian capital markets, fluctuations in molybdenum and commodity prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar versus the Euro); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structure formations, cave-ins, flooding and severe weather); inadequate insurance, or the inability to obtain insurance, to cover these risks and hazards; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in Greenland, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; increased competition in the mining industry for equipment and qualified personnel; the availability of additional capital; title matters and the additional risks identified in our filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on forward-looking statements or information.
These forward-looking statements are made as of the date hereof and, except as required by applicable securities regulations, the Company does not intend, and does not assume any obligation, to update the forward-looking information. Neither the NEO Exchange Inc. nor its regulation services provider accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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Contact
Ruben Shiffman, PhD, Chairman, President
Keith Minty, P.Eng, MBA, Engineering and Project Management
Jim Steel, P.Geo, MBA, Exploration and Mining Geology
Nauja Bianco, M.Pol.Sci., Public and Community Relations
Gary Anstey, Investor Relations
Eric Grossman, CPA, CGA, Chief Financial Officer
Telephone: +1 647 273 9913
Email: info@greenlandresourcesinc.com
Web: www.greenlandresources.ca
