TIDMGROC
RNS Number : 1395N
GreenRoc Mining PLC
28 September 2021
GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector:
Mining
28 September 2021
GreenRoc Mining Plc ('GreenRoc' or the 'Company')
First Day of Dealings
GreenRoc Mining Plc, a company focused on the development of
mining projects in Greenland, is pleased to announce that at 08:00
today its ordinary shares will commence trading on AIM under the
ticker GROC. As part of the process of Admission to trading on AIM
("Admission"), the Company has raised gross proceeds of GBP5.12m
through the issue of 51,200,000 new ordinary shares of GBP0.001
each at a placing price of 10 pence per share, equating to a market
capitalisation of GBP11.1 million on Admission.
Overview
-- GreenRoc intends to become a key supplier of critical,
high-demand, high-value minerals to fast-growing end markets,
benefitting from long-term structural drivers such as the
transition to a zero carbon global energy sector
-- Portfolio of 100% owned projects in Greenland acquired from
Alba Mineral Resources plc (AIM: ALBA) ("Alba") upon Admission (the
"Greenland Projects"), namely:
o Amitsoq Graphite Project ("Amitsoq")
o Thule Black Sands Ilmenite Project ("Thule Black Sands" or
"TBS")
o Melville Bay Iron Project ("Melville Bay")
o Inglefield Multi-Element Project ("Inglefield")
-- Graphite and titanium focus which are both designated as
critical minerals by the EU and the USA
o Demand for graphite is forecast to increase by 2,500% by 2040
- fuelled by the electric vehicle ("EV") sector
-- A proven management team with:
o An established track record of delivering value for
shareholders
o Strong expertise in the stable and mining supportive
jurisdiction of Greenland
o In depth knowledge of the disciplines required to fast-track
the Greenland Projects
through to both development and production
Kirk Adams, CEO of GreenRoc, commented: "GreenRoc's debut on AIM
comes at a time when demand for critical minerals is increasing
significantly. With today's IPO, we are able to offer investors an
opportunity to gain exposure to a diversified mix of high-grade
commodities designated as critical minerals by the EU and the USA,
in a jurisdiction which is both strategically located for multiple
end-markets and which is supportive of sustainable resource
development.
"Our objective is to fast-track exploration, supported by our
successful GBP5.12 million fundraising, to significantly add to the
inherent value of our assets and move towards development. We are
in excellent shape to do this, having just completed significant
drilling programmes at our flagship assets, the Amitsoq and the
Thule Black Sands Projects, and now moving forward to planning and
executing the next 12 months of exploration and development work.
As such, the coming months will be punctuated with operational
updates to drive investor interest and demonstrate the value of
what we believe are outstanding assets."
Background
With these Greenland based mining assets now separated from
Alba, the Company aims to build a position as a 'pure play'
Greenland focused mining company. GreenRoc will target its efforts
in developing mining projects in critical, high demand and
high-value minerals. GreenRoc will not be reliant on any single
commodity but will have a diversified commodity mix.
In 2020, the European Commission ('EC') published its latest
'List of Critical Raw Materials' using economic importance and
supply risk as the key determinants of criticality. The 2020 list
included graphite and titanium (the principal source of which is
ilmenite) as critical raw materials. According to the EC, China
provides 47% of the EU's supply of natural graphite and 45% of its
supply of titanium, highlighting the EU's overdependence on Chinese
supply.
These moves by two of the largest markets in the world, the EU
and the US, support the Company's strategy of seeking to fast-track
the development of the Amitsoq and the Thule Black Sands Ilmenite
Projects. In successful field seasons at Amitsoq the existence of
two high grade flake graphic deposits has been confirmed. One of
these is on Amitsoq Island, which is the site of the former Amitsoq
graphite mine and the other at the Kalaaq mainland discovery, with
average grades of 28.7% and 25.6% total graphite content
respectively. These are among the highest grades of any graphite
project in the world.
Independent test work on Amitsoq graphite has confirmed that it
can be upgraded to high-purity spherical graphite (>99.95% C)
for use in lithium-ion batteries and the EV sector. A maiden
drilling programme was completed at Amitsoq this summer, the
objective of which was to enable the Company to declare a maiden
Mineral Resource estimate for the Project.
An extensive surface drilling campaign at Thule Black Sands in
2018 led to the declaration of a maiden Mineral Resource of 19Mt@
43.6% Total Heavy Minerals, with an in-situ ilmenite grade of 8.9%.
This is considered by the Company to provide a solid foundation for
the advancement of the TBS Project, not least as a further drilling
programme has been executed at Thule Black Sands this summer with
the aim of materially increasing that Mineral Resource
estimate.
The objective is to have at least one, if not both of the
Amitsoq and TBS Projects firmly established as development projects
within 12 months of Admission.
Placing, Subscription, Acquisition and Use of Proceeds
The Company has raised gross proceeds of GBP5,120,000 through
the issue of 49,200,000 Placing Shares and 2,000,000 Subscription
Shares at a price of 10 pence per share (the "Placing Price").
On Admission, the Company completed the purchase from Alba of
the entire issued share capital of each of Obsidian Mining Limited,
White Eagle Resources Limited and White Fox Resources Limited (the
"Targets"), the owners of the Greenland Projects, and the
assignment to the Company of all amounts owing by the Targets to
Alba at Admission. The consideration paid to Alba is being
satisfied by the issue and allotment of 59,500,001 Ordinary Shares
to Alba at the Placing Price plus GBP50,000 in cash, for total
implied consideration on Admission of GBP6 million.
The net proceeds of GBP4,247,000 will be used to:
o provide funding for GreenRoc to further explore and develop
the Greenland Projects;
o reimburse Alba for an agreed proportion of the 2021 drilling
costs at the Amitsoq Graphite and the Thule Black Sands Projects;
and
o provide GreenRoc with ongoing working capital to support its
business operations.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events.
Without prejudice to the generality of the foregoing,
uncertainties also exist in connection with the ongoing Coronavirus
(COVID-19) pandemic which may result in further lockdown measures
and restrictions being imposed by Governments and other competent
regulatory bodies and agencies from time to time in response to the
pandemic, which measures and restrictions may prevent or inhibit
the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its
work activities at all. The Coronavirus (COVID-19) pandemic may
also affect the Company's ability to execute its work activities
due to personnel and contractors testing positive for COVID-19 or
otherwise being required to self-isolate from time to time.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information visit www.greenrocmining.com or contact
the following:
GreenRoc Mining Plc Tel: +44 (0)20 3950 0724
Kirk Adams (CEO)
Cairn Financial Advisers LLP Tel: +44 (0)20 7213 0880
Nominated Adviser
James Caithie / Sandy Jamieson
/ Emily Staples
---------------------------------
ETX Capital Tel: +44 (0) 20 7392 1494
Broker
Tom Curran/Thomas Smith
---------------------------------
St Brides Partners Ltd greenroc@stbridespartners.co.uk
Financial PR
Susie Geliher / Oonagh Reidy
/ Isabelle Morris
---------------------------------
Further Information:
Introduction
GreenRoc Mining Plc ("GreenRoc" or the "Company") was
established in March 2021 as a UK public limited company for the
purpose of acquiring all of the Greenlandic mining assets of Alba
and progressing the exploration and development of those assets.
Alba retains a 54% interest in the issued share capital of
GreenRoc. The assets in question are the Thule Black Sands Ilmenite
Project ("TBS"), the Amitsoq Graphite Project ("Amitsoq"), the
Melville Bay Iron Project ("Melville Bay") and the Inglefield
Multi-Element Project ("Inglefield") (together the "Projects" or
the "Greenland Projects").
The Directors believe that the combination of a suite of high
quality, diversified Greenlandic mining assets within a single,
Greenland-focused AIM-quoted vehicle creates a compelling
investment opportunity.
Both graphite and titanium (primary ore: ilmenite) have been
designated as critical minerals by the EU and the USA. With
drilling campaigns having been executed in the summer of 2021, both
at TBS to increase the existing Mineral Resource and at Amitsoq to
seek to define a maiden Mineral Resource, the Company is well
positioned to progress one or more of its mining assets into
development with the aim of securing exploitation licences within
the earliest practicable timescale.
Key Strengths
The key strengths and attributes of GreenRoc can be summarised
as follows:
Management Team
A proven management team with:
-- an established track record for delivering value for shareholders;
-- expertise in the key disciplines required to fast-track the
Greenland Projects through to development and production,
comprising resource development, mining and process engineering,
ecological and environmental management, corporate finance, legal
and regulatory risk, and government relations; and
-- deep knowledge of Greenlandic society, culture, environment
and logistics and strong relationships with a range of key
stakeholders in Greenland.
High-Grade Projects
-- Amitsoq's average graphite grades of 28.7% total graphite
content are among the highest of any graphite project in the world,
while TBS benefits from high in-situ ilmenite grades of 8.9%.
-- Independent test work on Amitsoq graphite confirms that it
can be upgraded to high-purity spherical graphite (>99.95% C)
for use in lithium-ion batteries and the EV sector.
-- The iron ore at Melville Bay has been proven to be
processable to a high-grade, 70% concentrate with low
impurities.
Projects in Critical and High-Demand Minerals
-- Both graphite and titanium (primary ore: ilmenite) have been
designated by the EU and USA as minerals which are critical for
economic and national security.
-- Demand for graphite is forecast to increase by 2,500% by
2040, fuelled by the rapid growth in the EV sector.
-- Ilmenite prices are at a multi-year high, with industrial
demand rising in China and other Asian countries and a shortage of
ilmenite feedstock.
Projects Well Positioned for Further Exploration and
Development
-- Progress to date at the Greenland Projects makes them well
positioned for further exploration and development, with
JORC-compliant mineral resources at TBS and Melville Bay and large
exploration targets declared at TBS and Amitsoq.
-- Drill programmes were executed at TBS and Amitsoq in the
summer of 2021 in order to further define these mineral
deposits.
Commodity Diversification
-- From graphite to ilmenite to iron ore, an investment in
GreenRoc represents a diverse commodity play, guarding against the
risk of demand and price fluctuations in a particular
commodity.
Operations Exclusively in a Transparent, Mining-Supporting
Jurisdiction
-- Greenland is a stable, European-style democracy with a modern
mining code and a Government and institutions supportive of the
sector.
-- In 2019, the Greenland Government legislated to make it
easier for the holder of an exploration licence to apply for an
exploitation licence.
-- In 2020 and 2021, in a significant show of support for the
mining industry, the Greenland Government reduced all licensees'
exploration commitments for those years to zero in response to the
Coronavirus pandemic.
GreenRoc Strategy
GreenRoc's strategy is to develop mining projects in Greenland
in critical, high-demand and high-value minerals.
There is increasing focus on Greenland as a strategic
jurisdiction and increased attention being placed on the potential
of its mineral wealth and its large-scale, undeveloped mineral
deposits. GreenRoc will be in a strong position to capitalise on
that interest as a Greenland focused mining company.
In 2018, the US Department of the Interior published a list of
35 mineral commodities considered critical to the economic and
national security of the United States. This list of critical
minerals included graphite and titanium, the primary ore of which
is ilmenite. In 2020, the European Commission ("EC") published its
latest 'List of Critical Raw Materials', using economic importance
and supply risk as the key determinants of criticality. The 2020
list included graphite and titanium as critical raw materials.
According to the EC, China provides 47% of the EU's supply of
natural graphite and 45% of its supply of titanium, highlighting
the EU's overdependence on Chinese supply.
These moves by two of the largest markets in the world, the US
and the EU, support the Company's strategy of seeking to fast-track
the development of the Amitsoq and TBS Projects. GreenRoc's
objective is to have at least one, if not both, of the Amitsoq and
TBS Projects firmly established as development projects within 12
months of Admission. In the next 12 months, the Company's objective
will be to commence work on the environmental and social impact
assessments which will, once completed, enable GreenRoc to apply
for an exploitation licence at one or more of the Projects.
GreenRoc will not be reliant on a single commodity but will have
a diversified commodity mix including high- value and critical
minerals. The Directors believe this will make the Company less
susceptible to the vagaries of market conditions and fluctuating
demand for a single product.
The Directors believe the establishment of a Greenland-focused
AIM-quoted company creates the opportunity for GreenRoc to build a
significant market value, given the market capitalisations of other
AIM-quoted mineral exploration and development companies whose
principal mining assets are in Greenland. Bluejay Mining plc (LON:
JAY) has a market capitalisation of GBP GBP114m, while AEX Gold
Inc. (LON: AEXG) is at GBP48m. Further afield, ASX-listed Greenland
Minerals & Energy Limited (ASX: GGG) has a market
capitalisation of AUD$161m (GBP GBP86m at an exchange rate of 1
AUD:GBP0.532). All figures are correct as at 22 September 2021
(rounded to the nearest million).
While highly prospective, GreenRoc's mining assets are still
currently in the exploration phase, so GreenRoc stands to be able
to add significantly to their inherent value through exploration
success and progressing one or more of the Greenland Projects into
the development phase, especially as significant drill programmes
have been executed at the Amitsoq and TBS Projects as recently as
the summer of 2021.
Those drilling programmes are expected to lead directly into
independent test work and mineral resource estimation work,
followed by detailed scoping studies/preliminary economic
assessment work.
For more information on the Company's assets, please visit
GreenRoc's website at: www.greenrocmining.com.
Board
The members of the Company's Board have deep expertise in mining
and mine development, considerable knowledge of Greenland and the
Greenland mining sector, as well as expertise in corporate finance,
legal and regulatory issues, ecology and the environment.
George Frangeskides (aged 51). Non-Executive Chairman
Mr Frangeskides has a broad range of experience gained from over
25 years in the mining, legal and corporate advisory sectors in
Australia and the United Kingdom and an extensive network of
contacts across the mining and investment sectors across the
world.
Mr Frangeskides, who is also the Executive Chairman of Alba,
initiated Alba's move into Greenland in 2015 with the farm-in and
acquisition of the Amitsoq Project. Subsequently, he led Alba's
strategy of adding other assets to its Greenland portfolio, firstly
with the TBS Project and then with Melville Bay and Inglefield.
Kirk Adams (aged 59). Chief Executive Officer
Mr Adams acts as a consultant to a 'big four' accounting firm on
mining and natural resource engagements throughout the world. His
most recent operational role, between 2017 and 2018, was as CEO of
Esrey Resources plc, which built a pilot metal recovery plant in
Macedonia. Prior to that, between 2013 and 2017, he was CEO and
General Manager of Stibium Mining Pty Ltd, a private Australian
natural resources company focused on antimony and gold.
Mr Adams has worked extensively in an advisory capacity in
emerging markets as well as advising governments on the adoption of
mining-friendly legislative frameworks. He spent seven years in the
Balkans, including five years as Director of Privatization for the
Kosovo Trust Agency. He holds a BSc in Mining from Camborne School
of Mines and an MBA from Cranfield School of Management.
Jim Wynn (aged 48). Finance Director
Mr Wynn is an experienced finance professional and chartered
accountant. He has held previous appointments on the boards of
other resource companies including finance director of Avocet
Mining Plc and CFO of Rainbow Rare Earths Ltd. He is currently CFO
of Moxico Resources plc. Mr Wynn was also previously employed by
Anglo American plc where he held a number of roles within the
finance, business development, and strategy departments of Anglo
Industrial Minerals Limited.
Mark Austin (aged 63). Non-Executive Director
Mr Austin, who is Alba's Chief Operating Officer and Senior
Geologist, has significant management and operational experience in
a career spanning four decades across a range of commodities. Mr
Austin's experience includes being a Non-Executive Director at
Central Rand Gold (2016-2017), being Group Geologist and CEO of
Kilimapesa Gold (Kenya) for Goldplat plc (2007-2013), being Vice
President- Exploration for Mano River Resources plc (2006-2007) and
being Senior Exploration Geologist for Placer Dome Exploration
(Africa-Eurasia) Ltd (2005-2006).
Mr Austin was responsible for overseeing the detailed design and
planning of the forthcoming drilling programmes at the Amitsoq and
TBS Projects.
Lars Brünner (aged 65). Independent Non-Executive Director
Mr Brünner (who resigned as a non-executive director of Alba in
order to be able to focus on the Greenland Projects), has been an
Environmental Consultant for more than 30 years, during which time
he has conducted Environmental and Social Impact Assessments for a
broad range of projects and developed a wide-ranging expertise in
environmental matters. From 2014 until May 2020, he was the Arctic
Mining and Environment, Business Development Leader for Golder
Associates A/S ("Golder"), a leading international mining and
environmental consultancy firm, and led the environmental field
team at Golder which undertook the first-year environmental
baseline studies at the TBS Project in 2018.
Mr Brünner brings with him an in-depth knowledge of Greenlandic
law, culture, environment and language, having worked in Greenland
for many years. He has established strong relationships with a
range of key stakeholders in Greenland and offers invaluable
support and advice to the Company's technical team.
Mark Rachovides (aged 58). Independent Non-Executive
Director
Mr Rachovides is President of the European Association of Mining
Industries, Metal Ores & Industrial Minerals ("Euromines"), the
recognised representative of the European Metals and Minerals
Industry. Euromines' main objective is to promote the industry and
its relations with European institutions at all levels. He is also
a Consultant to Dundee Precious Metals Inc.
Mr Rachovides has held numerous board positions in natural
resources companies active in Europe and elsewhere over the last
twenty years. He was formerly an executive director of European
Goldfields Limited which was acquired by Eldorado Gold Corporation
in 2012. Previously he was Vice President, Europe at Dundee
Resources Limited after spending 11 years at the European Bank for
Reconstruction and Development.
ENDS
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