Greenland Resources Enters Partnership to Boost Molybdenum and Magnesium Extraction
The Canadian Minerals Corporation’s Greenland Resources, which holds a license to extract molybdenum and magnesium from Malmbjerget in East Greenland, has recently made headlines by announcing a significant partnership with EIT Raw Materials. This public-private initiative, co-funded by the EU’s Horizon program, aims to bolster critical raw material supply chains within Europe.
Shareholder Development
Under the terms of this new agreement, EIT Raw Materials will invest €500,000 (approximately DKK 3.7 million) in Greenland Resources through the issuance of ordinary shares. In addition, 112,122 shares will be issued, generating gross proceeds of around DKK 1.2 million for the company. However, the agreement awaits final approval from the Central Bank, with completion anticipated by November 20th.
Focus on Innovative Extraction Methods
Greenland Resources is not stopping at this initial funding; the company has also sought additional financing from other EU Horizon-supported initiatives. The crucial funding from EIT Raw Materials will facilitate comprehensive testing of magnesium extraction methods. Listed as a critical raw material under the EU’s Critical Raw Materials Act, magnesium is a vital component in a variety of industries. Currently, China dominates the global supply, producing a staggering 87% worldwide and 95% for Europe alone.
A Strategic Imperative
Bernd Schäfer, Director of EIT Raw Materials, emphasized the strategic importance of this investment in a recent press release: “Magnesium is essential for Europe’s competitiveness, and yet the EU relies heavily on China for nearly all supply chains.” This partnership not only represents a response to the global competition for critical resources, but also aims to diversify supply and enhance the resilience of European industries.
Ruben Shiffman, Chairman of the Board at Greenland Resources, views the EIT Raw Materials investment as a pivotal opportunity. He believes it will enable the company to advance its innovative extraction technologies while potentially attracting other strategic EU investments.
In June of this year, Greenland Resources was granted a 30-year exploitation permit for their molybdenum and magnesium endeavors at Malmbjerget, marking a noteworthy milestone in their ongoing mission to secure vital resources for the future.