Alba Mineral Resources says GreenRoc is ‘strongly positioned’ for growth

(ALBA ) confirmed to investors this morning that GreenRoc Mining, a spin-off vehicle based on its Greenland mining assets, has begun trading on the AIM market.
On its first day of dealings, GreenRoc Mining announced that it has raised £5.12 million at 10p a share, valuing the company at £11.1m upon its admission to London’s junior AIM market.Alba will be majority shareholder of GreenRoc with a 54% stake in the new vehicle.
Under the terms of the spin-off, GreenRoc has now acquired all the Greenlandic mining assets of Alba Mineral Resources being the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project.
The Company intends to progress exploration and development activities in respect of the Greenland Projects ‘with the aim of securing a mining licence and commencing commercial production at one or more of the projects within the earliest practicable timescale.’
George Frangeskides, Executive Chairman of Alba Mineral Resources, stated: “For a long time, we have strongly believed that moving our Greenland assets into a Greenland-dedicated listed vehicle is in the best long-term interests of Alba and its shareholders.”
He added, “With significant backing for GreenRoc demonstrated by the £5.12 million raised on IPO, and with a management team possessing the expertise required to fast-track project development, we believe that our Greenland Projects are now strongly positioned for growth. As the majority shareholder in GreenRoc, Alba stands to benefit greatly from that.”
The London-listed firm 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.
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.
The newly formed vehicle, which was spun out as GreenRoc earlier this year, expects to raise £5m in its IPO upon its admission in mid-September for a market capitalisation of £11 million.
GreenRoc Mining’s assets include the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project.
The Company plans to progress exploration and development activities in respect of the Greenland Projects ‘with the aim of securing a mining licence and commencing commercial production at one or more of the projects within the earliest practicable timescale.’
Following the recently completed drilling programme at the Amitsoq Project, the objective will be to define a maiden JORC-compliant Mineral Resource Estimate for Amitsoq, allowing the Company to move to commissioning a detailed economic assessment of the Project.
Meanwhile, following the recently completed extension drilling programme at TBS, the objective will be to define a substantial increase to the Mineral Resource Estimate.
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.
Kirk Adams, Chief Executive Officer of GreenRoc, told shareholders that GreenRoc’s debut on AIM comes at a time when demand for critical minerals is “increasing significantly.”
“Our objective is to fast-track exploration, supported by our successful £5.12m fundraising, to significantly add to the inherent value of our assets and move towards development.
In a Q&A from May 2021, Alba Minerals’s Chairman, George Frangeskides elaborates on the rationale behind spinning out their Greenland assets into a new listed entity. He discusses the benefits to both Alba and its shareholders, funding and the advantages of Greenland.
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