Greenland Minerals and Energy issues new shares after exercise of options – Proactive Investors Australia

Greenland Minerals and Energy Limited (ASX:GGG) has issued 134,763 new shares valued at almost $11,000.

The issue resulted from the exercise of options valued at $0.08 each.

This price is similar to the company’s recent trading price, which has ranged from $0.08 to $0.10 since the beginning of 2018.

Emerging rare earth project

The company owns the Kvanefjeld Project in Greenland, one of the world’s most significant emerging rare earth projects.

READ: Greenland Minerals and Energy bags $10.25 million for rare earth project

It is well funded to continue optimisation work, update project cost structure, feasibility studies and enhance its development strategy after raising $10.25 in a recent placement.

This included $9 million from leading funds in Hong Kong, Singapore and Australia, at $0.09 per share.

In addition, the company’s major shareholder and strategic partner Shenghe Resources confirmed its intent to maintain its 12.5% shareholding by investing $1.25 million.

Based on an ore reserve of 108 million tonnes, the project has an initial mine-life of 37 years, with the reserve representing only circa 10% of the 1 billion tonne resource estimate.

READ: Greenland Minerals and Energy simplified rare earth refining will boost economics

Through 2018, the outcomes of optimisation work will be progressively rolled out, with engineering and feasibility studies updated accordingly.

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