GreenRoc Mining (GROC) , a Greenland-focused critical metals explorer, announced it has signed a Memorandum of Understanding (MoU) with Norwegian construction and mining group Leonhard Nilsen & Sønner, in relation to the development of GreenRoc's flagship Amitsoq Graphite Project in southern Greenland.
Separately, GreenRoc announced it has raised £550k via a placing of of 15.7m new shares at 3.5p/share, representing a 19% discount to Friday's closing price of 4.3p. GreenRoc said it would use the proceeds to advance test work and studies for the Amitsoq project:
These include a scoping study, processing of a 700kg bulk sample of graphite ore, electrochemical test work on Amitsoq HPSG (high purity spherical graphite), and ongoing work towards the completion of environmental and social impact assessment studies (EIA and SIA).
Alba Mineral Resources (ALBA ) holds a 54% majority interest in GreenRoc.
Stefan Bernstein, CEO of GreenRoc, commented: "We are delighted to announce the signing of this framework MoU. LNS is renowned for its expertise in construction and mining, particularly underground. It has been running some of the world's lowest-cost underground mining operations for many years and has experience in the mining of graphite.
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This MoU with LNS represents another important step forward for GreenRoc in bringing the Amitsoq Graphite Project into production. I am particularly looking forward to working with LNS as we explore how we can accelerate Amitsoq to production and make it into a profitable business for both companies and our shareholders, as well as for the people of Greenland."
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GreenRoc's MoU with Leonhard Nilsen & Sønner (LNS) should accelerate Amitsoq's schedule to production. LNS is an established civil/mining/logistics contractor with significant experience as a mine operator in Norway and Greenland, as well as in large-scale underground infrastructure projects. GreenRoc and LNS have entered phase 1 of discussions, focused on a detailed review of Amitsoq's requirements. Following this phase, the companies will focus on heads and terms.
The MoU also envisions the companies working together on other commercial outcomes, such as debt/equity financing, JV and procurement or staff, equipment and services at Amitsoq or GreenRoc's other projects, including Thule Black Sands and Melville Bay Iron.
Additionally, the £550k capital raise will ensure Amitsoq's production schedule stays on track, including a scoping study expected to begin shortly, and environmental and social impact assessments, expected to be completed in 2023. The proceeds should also support further commercial negotiations with potential offtake partners.
GreenRoc's flagship Amitsoq asset has been confirmed as one of the highest-grade graphite deposits in the world, with a resource estimate of 23.05 Mt at an average grade of 20.41% graphite, following January's 3x resource increase. Furthermore, a third of the contained graphite in the new 2023 MRE falls within the higher Measured and Indicated categories. As the Amitsoq island deposit remains open in at least two directions, there is potential for further expansion of the resource in the future.
The European Raw Materials Alliance has also endorsed the project as a "graphite resource of global importance" that will "enable the European Union to achieve a certain level of independence for the electrical vehicle supply chain". Previously, GreenRoc had confirmed that Amitsoq graphite could be purified to exceed the EV battery requirement of 99.95%. With global demand for graphite expected to soar, Amitsoq's vast deposit is set to play a key role in the transition to net zero.
As GreenRoc moves into the production phase for Amitsoq this year and enters discussions with potential customers and offtake partners, investors interested in the renewables, EV, battery, or mining sectors should GreenRoc and its majority holder Alba Mineral Resources.