Greenland Minerals is now funded to progress ongoing technical development of its giant Kvanefjeld rare earth project in southern Greenland after securing a $7m placement.
Proceeds from the placement will also be used to complete the project permitting and advance commercial development.
Earlier this month, the company completed an optimisation study that slashed capital costs for the project by nearly 40% to USD$505m.
Optimisation programmes have also increased forecast rare earth production by about 8% to approximately 32,000 tonnes per annum of rare earth oxides, about 6,000 tonnes of which would consist of the valuable magnet metals, neodymium, praseodymium, terbium and dysprosium.
Management said the placement of more than 58 million shares priced at 12c per share was heavily oversubscribed by Asian and Australian institutional investors.
Perth-based financial services firm, Ashanti Capital, acted as lead manager for the placement.
Greenland also recently made a formal application for a mining licence over the project.
A public consultation period of up to 12 weeks will soon commence and give interested stakeholders the opportunity to provide feedback on the Kvanefjeld project.
Kvanefjeld has an initial mine life of 37 years based on the 108 million tonne mine reserve estimate.
