REG - GreenRoc Mining PLC - Institutional Placing

GreenRoc Strategic MaterialsAnnouncement

12/06/2024 07:15

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RNS Number : 0479S  GreenRoc Mining PLC  12 June 2024

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

 

12 June 2024

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Institutional Share Placing

 

GreenRoc Mining Plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce that it has
raised gross proceeds of £100,000, through the issue of 5,263,157 new
ordinary shares at a price of 1.9 pence per share (the "Placing Shares").
The Placing Shares were issued in response to an offer to invest from an
institutional shareholder.

 

Application will be made for the Placing Shares, which will rank pari
passu with the existing ordinary shares of 0.1 pence each, to be admitted to
trading on AIM ("Admission"). It is expected that Admission will occur on or
around 17 June 2024.

 

Following the issue of the Placing Shares, the total issued share capital of
the Company will consist of 192,727,926 ordinary shares of 0.1 pence each. The
Company does not hold any ordinary shares in Treasury, therefore the total
voting rights in the Company following Admission will be 192,727,926. This
figure may be used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement

*ENDS** 

 

For further information, please contact: 

    GreenRoc Mining Plc                                          +44 20 3950 0724

    Stefan Bernstein, CEO 

  
    Cairn Financial Advisers LLP (Nomad)                         +44 20 7213 0880

    James Caithie / Sandy Jamieson /

    Louise O'Driscoll 

  
    Oberon Capital (Broker)                                      +44 20 3179 5300

    Nick Lovering / Adam Pollock

   
    St Brides Partners Ltd (Financial PR & IR)                   +44 20 7236 1177

    Paul Dulieu / Isabel De Salis / Isabelle Morris             greenroc@stbridespartners.co.uk

  

 

About GreenRoc

GreenRoc Mining plc is an AIM-quoted company which is developing mining
projects in Greenland in critical, high-demand and high-value minerals. Led by
a group of highly experienced mining industry professionals, GreenRoc has 100%
ownership of the following high-grade critical mineral projects both of which
benefit from defined Resources:

 

·       The Amitsoq Graphite Project, the Company's flagship project
and one of the highest-grade graphite deposits in the world with a combined
Measured, Indicated and Inferred JORC Resource of 23.05 million tonnes (Mt) at
an average grade of 20.41% graphite, giving a total graphite content of 4.71
Mt; and

 

·       The Thule Black Sands Ilmenite Project ('TBS'), which has an
initial Mineral Resource of 19Mt at 43.6% Total Heavy Minerals with an in-situ
ilmenite grade of 8.9%.

 

Key Points about Amitsoq, GreenRoc's Flagship Asset

1.   Amitsoq is located in the Nanortalik region of southern Greenland, in
year-round ice-free waters and on the same latitude as far northern
Scotland.

2.   GreenRoc is focused on fast-tracking the development of Amitsoq into a
producing mine in the shortest possible timeframe to meet critical demand from
Electric Vehicle ('EV') manufacturers in Europe and North America for new,
high grade and conflict-free sources of graphite.

3.  The Amitsoq Island Deposit has a total inferred, indicated and measured
JORC Resource of 23.05 million tonnes (Mt) at an average grade of 20.41%
Graphitic Carbon ("C(g)"), giving a total graphite content of 4.71 Mt. This
makes Amitsoq one of the highest-grade graphite projects in the world.

4.  Significant further resource upside exists at Amitsoq as the Amitsoq
Island Deposit is open in at least two directions, with potential for
considerable further expansion via the similarly high-grade Kalaaq Mainland
Deposit as well as a series of other high-grade targets within GreenRoc's
licence package.

5.  The Amitsoq Island Deposit was in small-scale production about 100 years
ago, and there remains considerable underground mine development in place from
that time, which will be of considerable benefit to GreenRoc in the mine
construction phase.

6.  In GreenRoc's test work programmes:

a.  Micronisation and spheronisation test work has proven that Amitsoq
graphite can be readily upgraded to high-grade, anode-quality graphite, known
as high purity spherical graphite or cSPG, a critical component in the Li-ion
battery of an EV.

b.  Amitsoq spheronised graphite has achieved higher than 99.95% purity with
relatively little energy input and processing and using a milder alkaline
purification method compared to the industry standard hydrofluoric acid,
boding well for future production costs and sustainability commitments.

c.  Electrochemical testing of Amitsoq graphite anode material within a test
Li-ion battery cell has shown that it performs very well, in part due to its
good crystallinity.

7.  The results of a Preliminary Economic Assessment (or PEA) for Amitsoq
released on 31 October 2023 give a post-tax NPV8 for the Project of US$179M,
an IRR of 26.7% and capex estimated at US$131M (including a 25%
contingency).  These figures solely relate to the economics of a mining and
primary processing operation in South Greenland and do not take into account
any potential upside from a downstream processing operation which GreenRoc
intends to establish in Europe or the USA.

8.  In relation to the downstream business, GreenRoc has completed a
Feasibility Study into the establishment of a graphite spheronisation
processing plant to produce 40,000 tonnes of cSPG per annum from graphite
concentrate delivered from Amitsoq. This Feasibility Study, which was
part-financed by a grant of approximately £250,000 from the UK's Automotive
Transformation Fund, gives an after-tax NPV8 to the downstream business of
US$545M with an IRR of 25.3%, total gross revenue of US$6.5Bn over a 22-year
period, total gross profit totalling US$2.7Bn, a 4-year payback period on
capital from start of production and an initial capex of US$321M inclusive of
a 25% contingency.

9.  Following a detailed evaluation process, the European Raw Materials
Alliance (ERMA) has expressed its support of GreenRoc and its Amitsoq graphite
project, stating that: "GreenRoc's graphite resource is of global importance
and, together with the Company's strategy, will enable the European Union to
achieve a certain level of independence for the electrical vehicle supply
chain. ERMA has approved the Amitsoq Graphite project and will engage to
support its development and financing to produce these critical raw materials
for the benefit of the European Union goals." (see RNS dated 8 February 2023).

 

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