2 September 2010

Mineral group plans £20m float

08/02/2010 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: Commodities , Fundraisings , New Issues

Sector: Mining

Subscribe today


More breaking news stories.
More extended feature articles.
And a depth of analysis you
can't find anywhere else.

Subscribe today and save 50%

VCT Report 2010

VCT Report 2010 uncovers the money available

for investment in every single VCT, helping you get one step ahead in the race to attract funding for your unquoted, AIM-listed or PLUS-quoted

company.

Order VCT Report 2010 today using this online form

Cash Shells Directory 2010

A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape. For more information and to order, click here or contact our marketing team on 020 7250 7056.

Coverage of AIM, techMARK and PLUS Markets

Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.

Take control of your investments

A full year's subscription to What Investment magazine for £19.95, a whopping 58% off. Get the latest news, features and expert advice on ISAs, Investment Trusts and Funds, SIPPS, Investing for Children and much much
more. Find out more here.

The Financial Times Guide to Personal Tax

is the definitive and most up-to-date guide to completing your self-assessment tax return, making sure that you get it right and on time, and showing how you can save tax. For more information and to order, click here or contact our marketing team on 020 7250 7056.

The AIM Guide Spring 2010

The new, fully updated AIM Guide is now available to buy for only £49.95 (saving you £30).

A 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today Hurry, as offer ends soon!

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

Anglo Asian into profit 02/09/2010

Central Asian gold producer Anglo Asian Mining has turned a $2 million (£1.28 million) interim loss into $6.2 million first-half pre-tax profits.

Tags: AIM , Commodities , Emerging markets , Turnaround

Sector: Mining

Companies: Anglo Asian Mining

Interim advance at Abbey Protection 02/09/2010

Legal fees and related insurance and services specialist Abbey Protection has increased first-half pre-tax profits 9.3 per cent to £4.7 million.

Tags: AIM , Growth Stocks , Mergers & acquisitions

Sector: Nonlife Insurance

Companies: Abbey Protection

Johnson Service on the prowl 01/09/2010

Workwear rental and facilities management concern Johnson Service Group is feeling acquisitive after losing a first-half £2.2 million pre-tax.

Tags: Deals & contracts , Mergers & acquisitions , Turnaround

Sector: Support Services

Companies: Johnson Service

More News

Sectors

Vitesse Media Events