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Eclipse Metals gains new substantial holder as part of transformational lvittuut acquisition

Last updated: 15:39 19 Jan 2021 AEDT, First published: 15:33 19 Jan 2021 AEDT

Eclipse Metals - Eclipse Metals gains new substantial holder as part of the transformational lvittuut acquisition
Cerium now holds an 11.36% stake in EPM.

Eclipse Metals Ltd (ASX:EPM) has gained a new substantial holder in Cerium Pty Ltd following the recent acquisition of the Ivittuut Project in Greenland, which is the world’s largest and only source of naturally occurring cryolite - an extremely rare mineral in commercial quantities.

As part of the consideration for the purchase, Cerium now holds 200 million shares in EPM and has a voting power of 11.36%.

World’s largest historical cryolite mine

Cryolite is a rare mineral proven to act as a beneficial fluxing agent to reduce energy consumption in aluminium production.

Although the mineral has been found in other places, Ivittuut, in the country’s southwest, is the only place where this mineral has been commercially extracted.

The company intends to systematically explore the project which is within a mining-friendly jurisdiction with easy access to Gronnedal port and major North American and European markets.

Consideration for the Ivittuut project.

Further consideration terms

From second completion, the company will also grant to Cerium a 3.5% net profit royalty payable in relation to any mineral product recovered from the tenement and sold.

Another material term of the agreement is that, for so long as Cerium holds at least 19% of the total issued share capital of the company, Cerium will be entitled to nominate one director for appointment to the board.

Eclipse Metals sees potential for early cashflow in Greenland

Eclipse Metals Ltd (ASX:EPM) chairman Carl Popal tells Proactive he’s encouraged by the possibility of an early restart of Ivigtût cryolite mine within its 100%-owned multi-commodity project in southwest Greenland after identifying potentially valuable polymetallic mineralisation in waste rock...

on 21/8/23