Greenland Minerals and Energy has reported the placement of 50,000,000 shares at a price of AUD 0.30 per share along with 25,000,000 free attaching options to current shareholders, Australian and international institutions, and Bell Potter Securities of investor clients to amass AUD 15 million.
The oversubscribed offer resulted in scaled back applications. Funds amassed will be utilized to conclude the plan to 100% ownership of the Kvanefjeld project announced on August 6, 201, as well as for general working capital. However, the plan to 100% ownership of the Kvanefjeld project is subjected to shareholder approval, which is slated for October 8, 2012, with final decision on October 15, 2012.
Greenland Minerals and Energyfs board has also decided on the initiation of a Share Purchase Plan (SPP) to allow the participation of current shareholders in the fund raising activity. In the SPP, up to 16,666,666 share with an issue price of AUD 0.30 cents per share are offered, with the SPP application period slated for closing on October 19, 2012 or immediately after reaching the subscription level of AUD 5 million.
The fund raising pursues significant advancements in the development f core asset of Greenland Minerals and Energy. The Kvanefjeld multi]element project is considered as one among the largest resources of uranium and light and heavy rare earth elements. According to an extensive prefeasibility study released by the company in May 2012, Kvanefjeld has the potential to be developed as a long-lasting, cost-effective resource for the production of uranium oxide and light and heavy rare earth elements.
Greenland Minerals and Energyfs board considers that the initiative to 100% ownership of Kvanefjeld is a valuable initiative for current shareholders. Moreover, the company is continuously improving the Kvanefjeld project and targets the completion of a mining license application. This move reflects the companyfs strategy of gradually derisking the Kvanefjeld project.