(Alliance News) - GreenX Metals Ltd on Monday said it has entered into an option agreement to buy up to 100% of a potentially large-scale gold project in eastern Greenland.
GreenX took out the option over the Eleonore North gold project from Greenfields Exploration Ltd. The option vests once GreenX has spent AUD600,000, about GBP311,476, on exploration at the project within 12 months. It is exercised for AUD250,000 in cash, AUD250,000 in cash or GreenX shares, and a 1.5% net smelter royalty.
GreenX said Eleonore North provides it with gold exposure in Greenland, adding to its other exploration prospect there, the Arctic Rift copper project, with which there can be operating synergies.
GreenX will be the project manager of Eleonore North at least until the end of June next year. The site has the potential to host a 'reduced intrusion-related gold system', similar to large bulk-tonnage deposit types found in Canada, GreenX said.
"We believe the mineral potential of Greenland is enormous, and we are progressively working on unlocking this potential," said Chief Executive Officer Ben Stoikovich.
GreenX shares were up 7.8% to 53.90 pence in London on Monday morning. The stock has multiplied from 11.15p a year ago.
By Tom Waite, Alliance News editor
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Greenx Metals (GRX)