Greenland Mines Ltd raises over US$42M and ends ATM financing
The Nasdaq-listed miner says it has completed Sarfartoq fieldwork and expects the financing to fund its 2027 milestones.
Mara Quinlan
Greenland Mines Ltd NASDAQGRML said Thursday it had raised more than US$42 million from existing investors, including a registered direct stock offering at US$12 per share and exercises of previously issued private warrants. The company says the money should fund planned exploration and development across its Greenland portfolio through targeted 2027 milestones, while newly issued shares increase the stock base.
Shares fell 20.92 per cent to US$11.19 in Nasdaq trading Wednesday, before the Thursday announcement, according to the NASDAQGRML quote at 4:00:01 p.m. EDT Sept. 23. The offer price was a 15.2 per cent discount to Tuesday's close, according to the NASDAQGRML quote at 4:00:01 p.m. EDT Sept. 23.
The Sept. 24 company release said the direct offering involved common shares and pre-funded warrants. All of those pre-funded warrants have been exercised, and proceeds from earlier private warrant exercises also form part of the more than US$42 million raised.
Greenland Mines has terminated its at-the-market share sale facility after saying its planned capital requirements through the 2027 milestones are substantially addressed. The same announcement reported that crews had completed a roughly three-week geological and structural field program at its Sarfartoq rare earth project in southwest Greenland.
"Raising more than $42 million from our existing investors gives us the capital required to execute our plan and achieve our targeted 2027 milestones," Greenland Mines president Bo Møller Stensgaard said in the release.
The share issuance and warrant exercises enlarge the common stock base, reducing the ownership percentage of investors who did not take part in the financing. Greenland Mines expects to submit the new Sarfartoq rock samples to a Canadian laboratory for rare earth analysis, with the results still pending and no assay date given.
Crews spent about three weeks mapping geology and structures, surveying outcrops by drone and collecting rock samples across priority areas of the Sarfartoq Carbonatite Complex, including newly identified carbonatite dykes. The campaign was designed to test possible geological connections between ST1 and other known rare earth zones, and to improve targets for later drilling and resource work.
WSP Denmark completed a second consecutive year of environmental baseline field investigations. The company winterized the Sarfartoq camp, preserving the option of preparatory work before its main 2027 field season.
An existing mineral resource at ST1 comprises about 12.2 million tons grading 1.32 per cent total rare earth oxides, according to the Sept. 24 release. Greenland Mines says ST1 occupies well under one per cent of the Sarfartoq exploration licence, with other known occurrences outside the current resource and economic analysis.
Greenland Mines plans its principal Sarfartoq field season in 2027.
