Greenland Minerals and Energy Limited (ASX:GGG) has issued 134,763 new shares valued at almost $11,000.
The issue resulted from the exercise of options valued at $0.08 each.
This price is similar to the company’s recent trading price, which has ranged from $0.08 to $0.10 since the beginning of 2018.
Emerging rare earth project
The company owns the Kvanefjeld Project in Greenland, one of the world’s most significant emerging rare earth projects.
It is well funded to continue optimisation work, update project cost structure, feasibility studies and enhance its development strategy after raising $10.25 in a recent placement.
This included $9 million from leading funds in Hong Kong, Singapore and Australia, at $0.09 per share.
In addition, the company’s major shareholder and strategic partner Shenghe Resources confirmed its intent to maintain its 12.5% shareholding by investing $1.25 million.
Based on an ore reserve of 108 million tonnes, the project has an initial mine-life of 37 years, with the reserve representing only circa 10% of the 1 billion tonne resource estimate.
Through 2018, the outcomes of optimisation work will be progressively rolled out, with engineering and feasibility studies updated accordingly.