Subiaco, Australia, September 02, 2011 --(PR.com
)-- The Greenland Minerals and Energy Ltd. have acquired the outstanding 39% of the exploration license. The license is acquired over the northern Ilimassauq Complex in Greenland. It contains Kvanefield multi-element deposit which includes elements like rare earth, uranium, and zinc. It is expected that Kvanefield contains metal inventory of about 6.6Mt total rare earth oxide and 3 Blbs Zinc. With such an acquisition the company will be able expand its exploration activity to such areas as well. However, three drills are already operating on such deposit. The feasibility studies tell that there is a good development scenario due to such license acquisition. It is also expected that Kvanefield could be a large multi-commodity mining operation, probably the world’s largest one in rare earth production capacity.
The reason behind such acquisition by Greenland Minerals can be the company’s laid down objective of developing the Kvanefield project. Such an acquisition will enable the GMEL to access large a resource base and thereby facilitates its development. According to the Managing Director of GMEL the 100% ownership is an important step by the company when it is looking for major technical advancements and it will also help to strengthen the Kvanefield potential.
Talking about the background of GMEL, it is a mineral exploration and development company. The main focus of the company is to unlock mineral rich resources of Greenland. GMEL had undergone a joint venture with Westrip (the company that had the outstanding 39% license) in 2007. Under the venture GMEL was the operator and manager of project. However, the company had options of acquiring 90% and 100% ownership by paying $10M (AUD) and $50M (AUD) respectively.
The company has been looking for the right arrangement of funds for this acquisition for almost last five months and was planning to give better return to stakeholders through such an acquisition. In all, it is expected that the company’s acquisition of license will help it to achieve its long term objective with the technological advancements in mineral exploration and development.
About Greenland Minerals and Energy Ltd
GMEL is a mineral exploration and Development Company which aims at unlocking mineral rich resources in Greenland.
Units 6, 100 Railway Road,
Subiaco Western Australia
Postal: PO Box 2006, Subiaco Western Australia 6904
+61 8 9382 2322
+61 8 9382 2788