Greenland Minerals and Energy's (ASX: GGG) flagship project is Kvanefjeld, a multi-element deposit located near the southwest tip of Greenland. Kvanefjeld is rapidly growing into one of the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride.
Greenland Minerals and Energy (ASX: GGG) has been granted a waiver on two listing rules from the ASX, with the following a statement by the company relating to the waivers.
Waiver 1: listing rule 10.13.3
To the extent necessary to permit the company’s notice of meeting seeking shareholder approval for the issue of 17,500,000 ordinary fully paid shares to Hackleton Investments Limited, to state the shares will be issued later than one month after the date of the shareholders’ meeting.
The waiver is conditional on the notice of meeting stating the shares will be issued to Hackleton no later than 30 June 2012.
The meeting seeking shareholder approval for the issue of 17,500,000 shares to Hackleton, will be held today at 11:00am (WST).
Waiver 2: listing rule 14.7
On the 13 December 2011 GMEL announced the details of an extension to the settlement of the agreement to move to 100% ownership of the Kvanefjeld multi-element project.
As a consequence of the settlement extension, GMEL has been granted a waiver from listing rule 14.7 to the extent necessary to permit the Company to issue to minority shareholders of Westrip Holdings Limited up to 7,825,000 fully paid ordinary shares and up to 5,000,000 options, later than 3 months after the general meeting of shareholders at which the issue of the Westrip Securities was approved.
The waiver is conditional on the Westrip Securities being issued no later than 15 June 2012 and otherwise on the same terms and conditions as approved by shareholders on 7 October 2011.
Greenland Minerals comments on importance
The company views’ securing the outstanding components of the project it does not already control such as the royalty and the 39% of the shares in GME A/S (Greenlandic subsidiary) to be of critical importance.
These acquisitions come at a time when the project’s international importance is growing quickly. Internal modelling indicates that annuities payable on the royalty even over the first several years of production could be far in excess of the consideration agreed and that this acquisition is a significant value-add especially when taken in the context of recent policy changes made by the government of Greenland towards the company’s license to be inclusive of Uranium.
There was also building, a requirement to resolve these outstanding issues so that the company can continue on its trajectory of entering orbit with several strategic consortiums to discuss development parameters for the Ilimaussaq Mineral Field which has a projected mine life of greater than 50 year based on current resources.
A new resource model is currently being calculated and is expected in the first half of March which will clearly demonstrate the global significance of the project with the inclusion of the maiden resource from zone’s 2 and 3.