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Greenland Resources Receives Letters of Intent From Finnvera to Finance Capex
TORONTO / Oct 01, 2024 / Business Wire / Greenland Resources Inc. (Cboe CA: MOLY | FSE: M0LY) (“Greenland Resources” or the “Company”) is pleased to announce th
About this update from Greenland Resources Inc.
[{"type":"text","content":"TORONTO / Oct 01, 2024 / Business Wire / Greenland Resources Inc. (Cboe CA: MOLY | FSE: M0LY) (“Greenland Resources” or the “Company”) is pleased to announce that further to its press release dated July 15, 2024, where the Company and its financial advisors, Endeavour Financial, entered into a new phase with numerous prospective financiers of the debt portion of the capex, the Company has received two letters of intent (“LOIs”) from the state-owned Finnish Export Credit Agency (ECA), Finnvera. These LOIs provide an indication of interest to support the Company for (i) a credit guarantee for the export of Finnish equipment for the construction and operation of the Project, and (ii) a raw material guarantee relating to offtake agreements, for the import of molybdenum products into Finland. Executive Chairman Dr. Ruben Shiffman noted, “since publishing the NI 43-101 Feasibility Study in 2022 and working subsequently over fifteen months to conclude the independent due diligence reports for lenders, we have numerous financial institutions in our data room with an offering memorandum to raise nearly US$700 million in debt and we have recently received various letters of intent, most importantly from Finnvera, considering our extensive Finnish content. The Malmbjerg project mineral reserves remain one of the highest-grade reserves worldwide and molybdenum, one of the best performing metals in the past three years, has been trading significantly higher than the price used in the Company’s Feasibility Study”. Greenland Resources Inc. Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100% owned Climax type primary molybdenum deposit located in central east Greenland. The Project has copper and also magnesium, a market dominated 98% by China. The Malmbjerg molybdenum project is an open pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from an NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with an US$820 million capex and a levered after-tax IRR of 33.8% and payback of 2.4 years, using US$18 per pound molybdenum price. The Proven and Probable Reserves are 245 millio...