MINEX Forum

Tag: Malmbjerg project

  • Greenland Resources Secures €500,000 EU-Backed Funding to Advance Magnesium Extraction at Malmbjerg Project

    Greenland Resources Secures €500,000 EU-Backed Funding to Advance Magnesium Extraction at Malmbjerg Project

    Greenland Resources Inc. has entered into a Financial Sustainability Agreement with EIT RawMaterials GmbH, securing €500,000 in EU-backed funding to advance innovative magnesium extraction at its Malmbjerg molybdenum project in Greenland. The funding, provided through Horizon Europe, will support testing of magnesium recovery from saline process water—an initiative aligned with the EU’s Critical Raw Materials Act, as magnesium remains one of Europe’s most import-reliant minerals.

    The company also plans a non-brokered private placement of up to 112,122 common shares at $1.65 each, raising approximately $185,000. The offering, pending Cboe approval, is expected to close around November 20, 2025. Greenland Resources has applied for additional Horizon Europe–supported programs, aiming to cover a substantial portion of the project’s equity capex.

    Under the agreement, EIT RawMaterials will invest through Greenland Resources’ subsidiary in Greenland, with securities convertible into company shares via put and call options exercisable within six months. At least €375,000 of the funding will be advanced immediately, with the remainder contingent upon final project reporting and approval.

    The Initial Conversion, tied to the offering’s expected closing date, would see EIT RawMaterials receive up to 493,939 shares at $1.65, depending on the final amount of Initial Funds disbursed. Any later conversion of Remaining Funds would be priced at the 20-day volume-weighted average, subject to a minimum of $1.65 per share.

    EIT RawMaterials CEO Bernd Schäfer emphasized Europe’s pressing need to secure magnesium supplies, noting that China currently produces nearly all of the EU’s consumption. He said the investment supports innovative, low-carbon production pathways vital for European industry and defence sectors.

    Greenland Resources Executive Chairman Ruben Shiffman said the funding sets an important precedent for future EU strategic investments, demonstrating that public European financing can be deployed through the company’s Greenland subsidiary and converted into its Canadian-listed parent entity.

    The Malmbjerg project, which received a 30-year exploitation licence in June 2025, contains both molybdenum and magnesium. The project’s design focuses on low environmental impact, with high-grade molybdenum expected to supply up to 25% of the EU’s annual consumption and fully meet its defence needs during the first decade of production. Magnesium recovery from saline water is being incorporated into updated feasibility economics.

    With China dominating global production of both molybdenum and magnesium, the EU views long-term supply diversification as essential. The Malmbjerg project, supported by the European Raw Materials Alliance, is positioned as a key strategic source for Europe’s green, industrial, and defence sectors.

  • Greenland Resources Signs MoU with Hempel to Supply Molybdenum to German Steel Industry

    Greenland Resources Signs MoU with Hempel to Supply Molybdenum to German Steel Industry

    Greenland Resources has signed a memorandum of understanding (MoU) with Düsseldorf-based Hempel Metallurgical GmbH for the long-term supply of molybdenum to the German steel sector. The agreement covers molybdenite concentrate and secondary products such as ferromolybdenum and molybdenum oxide, marking a significant step toward positioning Greenland Resources as Germany’s largest molybdenum supplier.

    Backed by its NI 43-101 feasibility study and existing offtake and roasting agreements, the company plans further announcements on direct supply deals with German steelmakers. The high-quality, low-emission molybdenum from its Malmbjerg project in east-central Greenland will undergo roasting in Belgium before delivery.

    Germany is the EU’s leading consumer of molybdenum, using 16.3 million pounds in 2024, according to the International Molybdenum Association. Greenland Resources has already secured offtake agreements with steel producers in Italy and Finland, further reinforcing its role as a critical supplier in the European market.

    The Malmbjerg open-pit mine, located about 30km from Greenland’s east coast, will produce pure molybdenum with magnesium by-products. The project’s low levels of deleterious elements make its molybdenum particularly suited for defence and high-performance steel applications, with the potential to meet all of the EU defence sector’s molybdenum needs and supply up to 25% of overall EU demand.

    In June, the company was granted a 30-year exploitation licence for molybdenum and magnesium at Malmbjerg, with operations required to commence by December 2028. The licence allows for an extension of up to 50 years, subject to further regulatory requirements.

  • Greenland Grants 30-Year Permit to EU-Backed Malmbjerg Molybdenum Mine

    Greenland Grants 30-Year Permit to EU-Backed Malmbjerg Molybdenum Mine

    Greenland Resources (Cboe CA: MOLY) has received a 30-year exploitation licence for its Malmbjerg molybdenum project, a significant step in securing the European Union’s critical mineral supply. Backed by the EU and the European Raw Materials Alliance (ERMA), the open-pit mine is expected to meet up to 25% of the EU’s molybdenum needs during its first decade of production.

    The Malmbjerg site will produce an average of 32.8 million pounds of molybdenum annually—an essential element for steel reinforcement and vital applications in aerospace, energy, and defence. The strategic importance of this development has only intensified as China, the global leader in molybdenum supply, tightened export controls following new U.S. tariffs.

    Greenland Resources has already signed off-take agreements with major European steelmakers, including Finland’s Outokumpu and Italy’s Cogne Acciai Speciali. The government of Greenland sees the project as a milestone in its push toward economic self-sufficiency. Minister Naaja H. Nathanielsen emphasized that Malmbjerg will bring jobs, local business opportunities, and potentially $1 billion in tax revenues over its operational lifetime.

    The project’s approval adds momentum to Greenland’s expanding mining sector. In recent weeks, the government has approved a range of new ventures, including a graphite initiative added to the EU’s list of 13 new critical raw materials projects and progress by Critical Metals Corp. on the Tanbreez rare earth mine with prospective U.S. EXIM Bank backing.

    As global competition for critical minerals intensifies, Greenland is emerging as a strategic hub for raw materials vital to Western supply chains.