AEX Gold (AEXG AEXG) has set up a joint venture with ACAM LP, a Jersey-based natural resource-focused limited partnership, to explore and develop strategic mineral assets.
The objective is to accelerate the exploration of AEX’s existing assets for strategic minerals that are in short supply globally, in high demand and vital for the global energy transition.
The Greenland-focused mining company said ACAM will invest £18m in exchange for a 49% shareholding in the joint venture which will be worth a combined contribution of £36.7 million.
As part of the venture, AEX Gold will contribute £18.7 million to the strategic non-precious mineral licences as well as site support, logistics and overhead costs associated with the use of its existing infrastructure in southern Greenland to support the joint venture’s activities.
An option for further future funding of £10.0 million is to be available on the achievement of agreed milestones. All of the group’s gold assets have been excluded from the joint venture.
Shares in AEX Gold were trading 4.55% higher this morning at 46p following the news.
“This JV will enable us to invest the capital required to bring these strategic mineral targets up the value curve towards future production and also enable us to explore the wider area to identify further non-precious strategic mineral assets,” said Chief Executive, Eldur Olafsson.
He acknowledged that the western world is experiencing short supplies of strategic minerals, such as copper, zinc, nickel, rare earths and graphite, to power the energy transition, with recent geo-political events putting security of supply under scrutiny and “into sharp focus.”
However, he says Southern Greenland is one of the few remaining under-explored frontiers for these vital minerals. He concluded: “Our exploration work so far has given us confidence that South Greenland has the potential to host world-class deposits of Strategic Minerals.”
“Starting with this investment by ACAM of £18 million for a 49% stake in these strategic mineral assets, this deal puts a concrete initial value on the non-precious mineral assets in our portfolio for the first time. To reflect the broader mineral potential in AEX’s portfolio, we will be changing the Company’s name to Amaroq Minerals Limited in the near future.”
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