1 September 2016

Mineral group plans £20m float

Robert Tyerman

Aussie-listed Greenland Minerals & Energy wants to raise £20m and float on AIM

Aussie-listed Greenland Minerals & Energy wants to raise £20m and float on AIM

Aussie-listed Greenland Minerals and Energy is planning a flotation on the London Stock Exchange to raise £20 million for a £1.4 billion world-class rare earth and uranium project at Kvanefjeld in Greenland. An independent pre-feasibility study has suggested that the project could run for 23 years with capital expenditure of $2.3 billion (£1.4 billion), generating an operating surplus of $600 million and paying back the initial outlay in five years.

Greenland Minerals, valued Down Under at almost £70 million at the equivalent of 30p, owns 61 per cent of the Kvanefjeld licence, with options to take that to 90 or 100 per cent, says managing director Rod McIllree. Having hired Evolution Securities to advise on the London issue and considering adding J.P. Morgan or another group to the team, the company would spend the money on a definitive feasibility study.

With Kvanefjeld containing an estimated 4.9 million tonnes of rare earth oxides (used in high-tech and environmental applications, including flat display panels, hybrid cars and wind turbines) and 120,000 tonnes of uranium oxide, U3O8, the pre-feasibility study envisages annual production of 43,729 tonnes of rare earth oxide and 3,895 tonnes of U3O8. McIllree insists that ‘the uranium will pay for everything’, but he sees rare earths as the major profit generator.

Describing rare earth carbonates, now trading at around US$13 (810p) a kilogram, as ‘the new market darling’, McIllree expects a favourable political reaction. Greenland Minerals has made former Greenland prime minister Lars Emil Johansen chairman of its local subsidiary and he contends the territory is anxious to cut unemployment as it seeks greater autonomy from Denmark.

This should be a float to watch.

Tags: Fundraisings, New Issues

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today

 

Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info

 

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Retailers getting One View of their customers

One View listed on AIM via a reverse takeover back in March. It has developed software that provides retailers with a combined view of their customers history in both online and in-store shopping channels. This sort of digital engagement is a big opportunity for retailers to boost their sales.

Angle moves into the clinical trial stage

Angle is making good progress with its ‘Parsortix’ system which uses a precision-etched cassette to ‘sieve’ patient blood samples and capture cancerous tumour cells. The first major trial is now underway in ovarian cancer, led by the University of Vienna.

StatPro benefiting from a Revolution

StatPro shares have done well over the last month with the stock market giving the company credit for the growth in its new ‘Revolution’ product.

Tracsis signs key US deal

Transportation software specialist Tracsis has won a significant contract in the US. This looks like it could be a breakthrough which opens up the vast North American railroad market to this Leeds based company.

MedaPhor expands in ultrasound

MedaPhor came to the market two years ago and the £14 million market cap’s shares have done little since. However a couple of recent developments suggest they are worth keeping an eye on.

ScS sees no slowdown in sofas

ScS Group confirms it hasn't seen a slowdown in demand post-Brexit. Momentum has continued since the update in early June, with like-for-like sales order intake of 14.8 per cent for the first financial year ending in July.

More News