Greenland-focused GreenRoc Mining raises £5.12m as it makes AIM debut
On its first day of dealings, (GROC announced that it has raised £5.12m at 10p a share, valuing the company at £11.1m upon its admission to the AIM market today.
GreenRoc, which was created to buy the spun-out assets of Alba Mineral Resources, intends to utilise its assets in Greenland to become a key supplier of critical, high-demand minerals..
In particular, the explorer outlined in today’s statement that it also intends to benefit from long-term structural drivers such as the transition to a zero carbon global energy sector.
Its portfolio of assets in Greenland include a range of 100% owned projects acquired from Alba Mineral Resources including; the Thule Black Sands ilmenite project, the Amitsoq graphite project, the Melville Bay iron project and the Inglefield multi-element project.
London-listed Alba announced in its final results for the year ended 30 November 2020 published back in May 2021 its intention to form a new AIM-quoted, Greenland-focused, spin-out company that would unlock ‘real and sustained value’ across its asset portfolio.
The plan formed after the pandemic had placed some doubt upon Alba’s ability to execute its field programmes, particularly at the Amitsoq Graphite Project where it had plans to drill. Following today’s admission, Alba said it will retain a 54% shareholding in the company.
At the time, it said it believed that moving the Greenland Projects into a new listed vehicle would allow the market to set ‘a clear value for those assets in isolation’ rather than as part of a larger pool of diverse mining, oil and gas and exploration assets, as is currently the case.
With these Greenland based mining assets now separated from Alba, the Company said it now intends to build a position as a 'pure play' Greenland focused mining company that will not be reliant on any single commodity ‘but will have a diversified commodity mix,’ it noted.
According to the European Commission, nearly half of the EU's supply of natural graphite and titanium is provided by China, highlighting the EU’s overdependence on Chinese supply.
GreenRoc said its strategy of seeking to fast-track the development of the Amitsoq and the Thule Black Sands Ilmenite Projects are therefore supported by both the US and the EU.
In recent weeks, more investors have turned their eyes towards Greenland after KoBold Metals, a mineral exploration firm backed by Jeff Bezos and Bill Gates, signed an agreement with Bluejay Mining to search for critical materials used in EV vehicles within the region.
To date, independent test work on Amitsoq graphite has confirmed that it can be upgraded to high-purity spherical graphite (>99.95% C) for use in lithium-ion batteries and the EV sector.
A maiden drilling programme was completed at Amitsoq this summer, the objective of which was to enable the firm to declare a maiden Mineral Resource estimate for the Project.
Meanwhile, following the recently completed extension drilling programme at TBS, the objective will be to define a substantial increase to the Mineral Resource Estimate.
GreenRoc’s objective is to have at least one, if not both of the Amitsoq and TBS Projects firmly established as development projects within 12 months of its admission to AIM.
Kirk Adams, Chief Executive Officer of GreenRoc, told shareholders that GreenRoc’s debut on AIM comes at a time when demand for critical minerals is “increasing significantly.”
“Our objective is to fast-track exploration, supported by our successful £5.12m fundraising, to significantly add to the inherent value of our assets and move towards development.
We are in excellent shape to do this, having just completed significant drilling programmes at our flagship assets, the Amitsoq and the Thule Black Sands Projects, and now moving forward to planning and executing the next 12 months of exploration and development work. As such, the coming months will be punctuated with operational updates to drive investor interest and demonstrate the value of what we believe are outstanding assets.”
Follow News & Updates from here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.