Greenland Mines Completes $35 Million Acquisition of Sarfartoq Rare Earth Project

en.Wedoany.com Reported - On September 1, Greenland Mines completed the acquisition of the Sarfartoq neodymium-praseodymium rare earth project in southwestern Greenland, with a total transaction consideration of $35 million, of which $20 million was paid in cash and $15 million was paid in Greenland Mines shares. This closing fulfilled the definitive acquisition agreement signed by both parties in May, officially incorporating the Sarfartoq project into Greenland Mines' mineral asset portfolio. The Greenland government had previously approved the indirect transfer of exploration license MEL 2020-32 for the Sarfartoq carbonatite complex under Section 69(1) of the Mineral Activities Act, clearing the key regulatory condition for the transaction closing.

The transaction was completed through the acquisition of interests in Neo North Star Resources. Neo North Star Holdings, a subsidiary of Neo Performance Materials, previously held a 43.47% stake in NNSR Holdings. Upon completion of the transaction, Neo received equity in Greenland Mines and retained the right to offtake up to 60% of future ore or mineral concentrate from the Sarfartoq project. The related materials are planned to be supplied to Neo's Silmet rare earth separation facility in Estonia.

Prior to closing, Greenland Mines completed a new S-K 1300 mineral resource estimate for Sarfartoq. Under the combined open-pit and underground development scenario adopted by the company, the ST1 deposit hosts 6.9 million tonnes of indicated mineral resources at an average total rare earth oxide grade of 1.60%; it also hosts an additional 5.3 million tonnes of inferred mineral resources at an average grade of 0.96%, bringing the combined resources to 12.2 million tonnes at an average grade of 1.32%. The effective date of the aforementioned resource estimate is July 31, 2026, and it currently remains classified as mineral resources rather than mineral reserves.

The project's preliminary assessment proposes a 9-year mining plan with a designed ore processing capacity of approximately 1.4 million tonnes per year, processing a cumulative total of approximately 12.2 million tonnes. Metallurgical testing conducted by SGS Canada in 2026 produced a flotation concentrate of approximately 8.25% TREO, with a designed TREO recovery rate of 63.6%. ST1 occupies less than 1% of the entire 191-square-kilometer exploration license area, and five known rare earth mineralized occurrences are distributed along an approximately 32-kilometer outer ring structure within the license area, most of which have not yet been systematically tested.

Following the completion of the acquisition, Greenland Mines plans to immediately proceed to the next phase of field work, including targeted infill drilling, expanded resource verification, pilot-scale metallurgical testing, mine engineering planning, and environmental and social baseline surveys, and will advance the project's preliminary feasibility study based on these efforts. The technical team plans to return to Sarfartoq in September, while utilizing high-resolution low-altitude drone magnetic surveys to screen new drill targets within the license area. Environmental baseline surveys are also planned to continue, as this work is one of the regulatory procedures required before the project's future mining permit application.