TORONTO, December 19, 2024–(BUSINESS WIRE)–Greenland Resources Inc. (Cboe CA: MOLY | FSE: M0LY) (“Greenland Resources” or the “Company”) is pleased to announce that further to its press releases dated October 1 and October 15, 2024, where the Company announced support on the debt portion of the capex from Scandinavian export credit agencies, the Company has now received a letter of intent (“LOI”) from the state-owned financial institution, Export and Investment Fund of Denmark (“EIFO”).
This LOI provides an indication of interest to support the Company for a credit guarantee for the export of Danish equipment for the construction and operation of the Project. Further due diligence of the project is required before the offer can become binding. As a state-owned Export Credit Agency, EIFO carries the rating of the Kingdom of Denmark, being AAA credit rating and brings a significant value into the transaction.
Executive Chairman Dr. Ruben Shiffman noted, “The EU is the second largest molybdenum user globally and has no molybdenum extraction. Our project has significant Danish content which includes Danish mining equipment from FLSmidth. The Project intends to supply 100% of the Danish demand for ammonium dimolybdate (ADM) where Denmark is of one of the largest users worldwide and will indirectly supply 100% of Denmark’s wind turbine industry molybdenum requirements (120kg of Mo per MW installed capacity). The Project can also contribute to EU and DK Defense needs with its high-quality molybdenum product, as well as reduce the grants from Denmark to Greenland by approximately 18%. In addition, the project sustainability team is located in Denmark and two of Greenland Resources’ Board members are Danish.
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 Climax type primary molybdenum deposit located in central east Greenland. The Project has copper and also magnesium, a market dominated 98% by China. 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 an NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with an US$820 million capex and a levered after-tax IRR of 33.8% and payback of 2.4 years, using US$18 per pound molybdenum price. The Proven and Probable Reserves are 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.sedarplus.com.
