RE: RNS14 Jul 2025 08:24
Funding
- The US has enacted legislation such as the Inflation Reduction Act and the Defense Production Act, which support the development of secure, non-Chinese supply chains for critical minerals through grants, loans, and offtake agreements.
- The EU and UK have both launched dedicated critical raw materials strategies, including the EU Critical Raw Materials Act and UK Critical Minerals Strategy, which provide for public investment and partnerships in projects that can enhance supply chain resilience.
- Greenland, while semi-autonomous, has close ties with Denmark (an EU member) and increasing engagement with Western strategic partners seeking to reduce reliance on single-source suppliers, especially for REEs, niobium, and tantalum.
The Company will also assess potential funding support from international development banks, innovation funds, and climate-finance institutions targeting sustainable resource development. These mechanisms provide a potential pathway to advance exploration and development at Motzfeldt without over-reliance on equity dilution via the public markets, helping to preserve shareholder value while accelerating progress.
Several high-profile critical mineral projects have recently secured government or institutional funding support, underscoring the appetite for investment in secure, ethical supply chains in the West. See Table 1 for examples.
The EU Critical Raw Materials Act ("CRMA") supports upstream and downstream REE projects. Greenland projects can benefit via Denmark's EU status, as demonstrated by the Amitsoq Project's recent award of "Strategic Project" status under the CRMA (see GreenRoc RNS of 4 June 2025).
