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LONDON (Alliance News) - Worthington Group PLC Friday said work has begun in the Paatusoq field, Greenland, and it has the intention of investing further in Greenland Rare Earth Projects Ltd if that company can acquire a neighbouring license.
Worthington believes that it is vital to complete this first stage of geophysical surveying, conducted by EON Geosciences Inc, before the winter weather sets in and said that the survey is on track.
The geophysical survey of the field will be followed by a multi-phase field programme in 2015.
Exploration is focused on the Paatusoq syenite complex in south-east Greenland within the Gardar Alkaline Igneous Province, which contains the two largest proven rare earth element resources outside of China, said the company in a statement.
Rare earth elements comprise a group of 17 chemical elements appearing in the periodic table.
In the same statement, Worthington said a further agreement has been reached whereby it will, subject to Greenland Rare Earth Projects Ltd acquiring a neighbouring license, invest a further USD500,000 in order to purchase an additional 10% interest in GREP.
This will help finance working capital and assist GREP in the purchase of the neighbouring license. Together with Worthington's existing GREP shares and options, Worthington's interest in GREP will increase to 51%.
In order to finance this second phase of the GREP investment, Worthington is "placing up to GBP500,000 of unsecured convertible loan notes with specialist investors," said the company in a statement.
"The loan notes will pay an interest coupon of 4.5% per annum, they are convertible at any time after three months from the date of issue, at the option of the loan note holders, into Worthington ordinary shares at a price per Worthington ordinary share of GBP1.70," it added.
"I'm really excited for the GREP team. Having seen EON, the internationally renowned geophysical team, arriving in the area really brings this project into sharp focus," said Worthington Chief Executive Doug Ware.
Worthington saw its shares rise 34.1% to 122.00 pence per share Friday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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