Greenland Minerals Limited (ASX:GGG) has news pending of a proposed capital raising and has been granted a trading halt by the ASX.
This halt will remain in place until the start of trading on Wednesday, July 31, or when an announcement is released to the market, whichever occurs earliest.
The company’s shares last traded at 15 cents after reaching a 12-month high of 16.5 cents earlier this month.
Last week the company received confirmation from Greenland’s Mineral Licence and Safety Authority (MLSA) that its mining licence application for the Kvanefjeld Rare Earth Project had been received.
In late June the company lodged an application for an exploitation mining licence for the project, which has more than 1 billion tonnes of resources across three zones – Kvanefjeld, Sorensen and Zone 3.
The company has previously provided the MLSA with a copy of a feasibility study and financial model as well as a copy of the project’s JORC-compliant ore reserves statement and report.
Next step in the permitting process is a period of public consultation over 8 to 12 weeks with interested stakeholders to provide feedback on the application.
Greenland Minerals also recently revealed a 40% reduction in the capital cost estimate for the project – to US$505 million from US$832 million.
This reduction is the result of optimisation studies covering all elements of the project from the flowsheet to civil construction.