Ram Resources
Ram Resources Ltd to buy niobium project in Greenland
Ram Resources (ASX: RMR) has agreed to buy the potentially large Motzfeldt tantalum-niobium project in Greenland.
This would be acquired via Ram buying the tantalum-niobium project by buying unlisted UK-based Greenland Resources Ltd.
Ram will buy an initial 51 per cent interest in Greenland Resources Ltd through the issue of 280 million ordinary fully paid shares and a further 280-million options, each with an exercise price of 3c an option.
Following the completion of the acquisition of the initial interest, Ram would have the option of acquiring a further 19 per cent of the issued capital of GRL by paying to the vendor $1 million in cash within three years, and by providing funding of $10 million.
Ram could increase its shareholding to 90 per cent by paying a further $2 million cash and providing funding of $15 million.
The Motzfeldt project is a diverse minerals deposit that is primarily being targeted for tantalum, niobium, and rare earth elements (REE), though zircon, uranium and thorium are also in the mineralised zone.
The project comprises three adjacent exploration licences totalling 84sq.km in Southern Greenland.
A further exploration licence of about 970sq.km and which surrounds the other three licences, has been applied for by the company but has yet to be granted.
Ram said that the project has the potential to become a world-class bulk-tonnage tantalum and niobium deposit.
It said exploration targets estimated the size at 200-500 million tonnes at an average grade of 1000-1400ppm niobium and 100-120ppm tantalum.
"However, there is currently insufficient information to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource and potential quantity and grade is conceptual in nature," warned Ram in a statement to the ASX.
But it said there had been identification of five major radiometric anomalies over a 7km strike length. Only one – Anomaly 4 – has been drilled.
The company said that diamond drilling on Anomaly 4 returned tantalum and niobium from the surface, including best results of 630ppm tantalum from 18m and 7800ppm niobium from 28m.
"Preliminary metallurgical and engineering scoping studies completed in 2002 concluded that there were 'no fatal flaws' in the Motzfeldt project," Ram said.
It would also start a drill test of most promising targets in the first field season, which stretches from June to October, with the aim of establishing an initial JORC-compliant resource.
Ram said that previous work had focused mainly on tantalum and niobium, but that it would seek to also understand the REE potential of the deposit.
Tantalum is used in the electronics and aerospace markets, while niobium is used as an alloying addition to steel in the form of ferroniobium.
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