VOX MARKETS Today28 Sep 2021 14:02
On its first day of dealings,
GreenRoc Mining
(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.
Sign In
Follow the stocks
