AEX Gold acquires licence area with ‘significant’ strategic mineral potential
(AEXG ) will become the third largest licence holder in Greenland and the largest in Southern Greenland following its acquisition of mineral exploration licences in the region.
The Greenland-focused independent mining company announced on Thursday morning that it had acquired licences known as No. 2020-41 and 2021-11 covering areas in South Greenland from Orano group (“Orano”) for zero upfront consideration and a royalty on future production.
The newly acquired licence area covers a total of 3,527.75 km2, taking the company’s total land package in South Greenland to 7,615.85km2. In particular, the Board said it views these additional licences as holding “significant opportunity” for the discovery of strategic minerals.
The acquisition, which is subject to approval from the Greenland Government (the process of which is underway), will see
AEX become the largest licence holder in South Greenland, and the third largest in Greenland, after Anglo American and Greenfield Exploration, respectively.
The new licences sit within a interpreted Laurasian Mineral Belt connecting Eastern Canada through Greenland to Scandinavia that hosts World Class mineral deposits such as Voisey’s Bay (Canada), Gardar Province (Greenland), and the Kiruna IOCG belt (Scandinavia).
The licences have been acquired in exchange for a 0.5% contractual, gross revenue royalty (GRR), based on any future mineral sales from the licence area. The royalty is capped at US$10 million and Orano has a right of first refusal on any sales or transfer of licences.
AEX explained that the licence area includes assets which increase the Company’s exposure to metals such as nickel, copper, zinc, lead, titanium, vanadium, graphite and rare earth minerals, as well as additional gold resources across the Nanortalik and Tartoq gold belts.
The Company also acknowledged that the minerals present are categorised as strategic, due to increasing demand for their use in the global energy transition, and the acquisition now potentially gives AEX shareholders exposure to 29 elements across South Greenland.
Southern Greenland is considered a prospective region for rare earth element reserves; the region hosts 1.5% of global rare earth element reserves. The European Commission estimates that with further exploration this number could increase to as high as 9.2%.
AEX said the significance of this resource base in Greenland presents an opportunity to become a vital supplier of strategic minerals to the West which currently relies on supplies of rare earth elements from China, which controls 90% of the midstream of the supply chain.
The rise in demand for these minerals is due to the need for alternative energy, but also due to the rapid growth and innovation in the technology sector, with rare earth elements and other strategic metals being used in the manufacturing of most high-tech devices, it noted.
AEX believes its mineral system modelling highlights the potential of Southern Greenland to host significant strategic metal deposits. It plans to use its infrastructure, such as the 50 Personnel Exploration Camp at Nalunaq, to explore and potentially develop the licences.
Eldur Olafsson, CEO of AEX, said Greenland “has the potential to become a crucial supplier of these vital minerals to the Western world, and AEX intends to be a key player in this.”
He said: “AEX is now the third largest licence holder in Greenland and the largest in Southern Greenland. We have an excellent relationship with the Government which continues to provide strong support to the mining industry both fiscally and through favourable legislation.”
He highlighted that AEX will conduct this exploration “through the use of modern, cutting-edge exploration methods and techniques” utilising the company’s existing camp and infrastructure.
In a statement released this morning, AEX Gold informed investors ahead of an upcoming shareholder meeting next month that it plans to change its name to “AMAROQ MINERALS Ltd,” to reflect the business holding mineral licences in gold and also in strategic minerals.
The Company also acknowledges that “Amaroq” means “Arctic Wolf’ in Greenland, thereby reflecting the company’s focus to be recognised foremost as a Greenlandic business, it said.
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