REG - GreenRoc Strateg PLC - Amitsoq Update

GreenRoc Strategic MaterialsAnnouncement

27/08/2024 07:00

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RNS Number : 6841B  GreenRoc Strategic Materials Plc  27 August 2024

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

 

27 August 2024

GreenRoc Strategic Materials Plc

("GreenRoc" or the "Company")

 

Amitsoq Update

LOI Signed for AAM Plant Site &

Application Submitted for EU Strategic Project Status

 

 

GreenRoc Strategic Materials plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is pleased to announce
that it has signed a Letter of Interest ("LOI") to secure an area in Southern
Norway for the Company's planned graphite Active Anode Materials ("AAM")
production plant. GreenRoc has also applied for "Strategic Project" status
under the EU's Critical Raw Materials Act ("CRMA") and has submitted the
Project Description for the Amitsoq Graphite Mine in South Greenland to the
Government of Greenland as part of the Company's path to achieving an
Exploitation Licence.

 

Highlights

 

LOI for AAM Plant

·     GreenRoc has signed an LOI with Otra Holding a/s, the owner of Eyde
Materials Park in southern Norway, a sustainable industrial park focused on
the battery value chain and the green transition, to reserve an area of
100,000m² for GreenRoc's AAM plant.

·     A new powerline providing 800MW to the area is planned for 2027 and
an industrial road leading the 5km to Port of Arendal at Eyde is under
planning/construction.

 

Application for EU Strategic Project Status

·     GreenRoc has submitted its application to the EU for each of the
Amitsoq Graphite Mine and AAM Plant to be designated as a "Strategic Project"
under the EU's CRMA. The processing of applications will take place in the
autumn of 2024, with the first round of Strategic Projects expected to be
announced by December 2024.

·     Being awarded Strategic Project status brings several potential
advantages, such as priority treatment in the permitting process, potential
eligibility for financial support from EU funding programmes and enhanced
visibility and attractiveness to investors.

 

Submission of Project Description as part of Exploitation Permit Process

·     As part of the process of obtaining the grant of an Exploitation
Permit for the Amitsoq Graphite Mine, GreenRoc has submitted its final Project
Description to the Greenlandic Government for approval, prior to public
consultation.

 

Details

 

LOI for AAM Plant

 

Following a lengthy evaluation process, the Company has selected Eyde
Materials Park in southern Norway as the preferred location for its European
AAM plant.

 

Power costs in Norway are among the lowest in Europe, and Norway also
generates a high proportion of its electricity from renewable sources. These
are important factors for GreenRoc in any decision as to the location of its
AAM Plant. Further, Norway recently signed a partnership agreement with the EU
in relation to critical raw materials and the country has a long history of
hosting large-scale mineral processing industries.

 

Several attractive sites in Norway have been evaluated by GreenRoc. Eyde
Material Park in southern Norway, near the town of Arendal (see Figure 1), has
been selected as it is considered to offer a great deal of flexibility. Eyde
Material Park is a sustainable industrial park focused on the battery value
chain and the green transition. The park is placed within an industrial
ecosystem referred to as Norway's "Battery Coast" and which includes a range
of processing and manufacturing industries.

 

An LOI has been signed between GreenRoc and the owner of Eyde Material Park,
Otra Holding a/s. The LOI concerns a single piece of land covering 100,000m²
in the Longum Nord area of Eyde Materials Park.  The Longum Nord area is
reserved for battery-related industries. The LOI reserves the area for
GreenRoc for an initial period of 6 months from the date of the signature,
which may be extended by mutual agreement.

 

Longum Nord is ca 5km from Port of Arendal (Figure 1) which in turn is only
about five days' shipping time from the Company's planned graphite mine at
Amitsoq in southern Greenland. The regulations for large and power-consuming
industries are in place and Longum Nord now only awaits the final approval of
infrastructural layout from Arendal municipality. The land that GreenRoc has
reserved can be ready for construction by 2025. An industrial road to connect
the Port of Arendal and Longum Nord is under final construction. A new power
supply of 800MW is planned for the area. The Longum Nord site lies opposite
Morrow Batteries' Gigafactory (see Figure 1), which will be Europe's first
battery factory of the lithium-ion phosphate ("LFP") type, presently in the
final stages of construction. Morrow Gigafactory was officially inaugurated by
the Norwegian Prime Minister on 16 August 2024.

 

Application for EU Strategic Project Status

 

GreenRoc has applied for the Amitsoq Graphite Project to be designated a
Strategic Project under the EU CRMA.

 

Two separate applications have been submitted, one concerning the extraction
of flake graphite concentrate from the planned Amitsoq Graphite Mine and the
other concerning the production of AAM using Amitsoq graphite concentrate as
feedstock. The applications were submitted in the first round of the
application process, which ended on 22 August 2024.  The Company understands
that applications will be evaluated in the coming months with the announcement
of those projects to have been granted Strategic Project status expected in
December 2024.

 

The European Union's Critical Raw Materials Act ("CRMA") is designed to ensure
the EU's access to a secure, sustainable, and diversified supply of critical
raw materials ("CRMs") that are essential for the green and digital
transitions, as well as for defence and space applications. One key component
of this legislation is the identification and support of "Strategic Projects"
related to the extraction, processing, and recycling of CRMs.

 

Strategic Projects under the CRMA are initiatives that are identified as
critical to the EU's objectives of securing a stable supply of CRMs. These
projects can be located both within the EU and in an Overseas Country and
Territory ("OCT"), provided they contribute significantly to the EU's supply
chain resilience.  Greenland is an OCT associated with the European Union
(EU).

 

To be designated as a Strategic Project, a project must meet several criteria:

 

(1)     Significant Contribution: The project should make a substantial
contribution to the EU's CRM supply chain, reducing dependency on non-EU
sources or enhancing processing and recycling capabilities;

(2)     Sustainability and Circularity: The project should adhere to high
environmental standards, including sustainable extraction and processing
practices, and should contribute to circular economy goals through recycling
and reuse;

(3)     Economic Viability: The project must be economically viable, with
a clear business case that shows it can operate profitably;

(4)     Innovation and Technology: The project should involve innovative
technologies or processes that advance the EU's capabilities in CRM
extraction, processing, or recycling; and

(5)     Strategic Importance: The project should align with the broader
goals of the EU, such as the Green Deal, digital transformation, and strategic
autonomy in critical sectors such as energy, defence, and space.

 

Projects designated as Strategic Projects under the CRMA can benefit from:

 

·    Simplified and Accelerated Permitting: Strategic Projects can receive
priority treatment in the permitting process, with faster decision timelines;

·   Access to Funding: these projects may be eligible for financial support
from EU funds, including grants, loans, or guarantees from instruments like
the InvestEU program;

·   Enhanced Visibility: being recognised as a Strategic Project can enhance
a project's visibility and attractiveness to private investors; and

·   Collaboration and Partnerships: Strategic Projects may facilitate
greater collaboration between EU Member States, industry stakeholders, and
international partners.

 

Submission of Project Description as part of Exploitation Permit Process

 

On 15 August 2024, GreenRoc submitted the Amitsoq Mine Project Description to
the Greenland Government for final approval. The Project Description is a
document which describes all of the main elements of a mining operation,
including mining method, lists of staffing and siting of infrastructure,
tailings storage facilities, energy generation etc. The Project description is
prepared in Greenlandic and Danish versions supplemented by a technical and
more detailed version in English. Following the Government's approval, with
any requested edits, the Project Description then proceeds to a public
consultation for a minimum of 35 days, after which a "White Book" is prepared.
The White Book contains the response from the stakeholders and a commentary
from the applicant company on issues raised.  GreenRoc's Project Description
and White Book, along with the 2023 Mineral Resource Estimate report for
Amitsoq, will then be formally submitted as part of the Company's application
for an Exploitation Licence. This application is expected to be ready for
submission this autumn.

 

GreenRoc's CEO, Stefan Bernstein, commented:

 

"I am very pleased that our search for the best location for our AAM plant has
ended with such an attractive location. Norway has amongst the lowest energy
prices in Europe and also the lowest CO2 emission per unit of produced
electrical energy. Eyde Material Park has been able to offer flexible terms
which allows us to plan ahead for the coming time. Another attraction is that
Norway has a National Battery Strategy with a variety of financial and other
support programs in place to help industries such as ours, to get started. In
addition, Norway has a long tradition of hosting heavy processing industries
and has all the necessary regulations in place to ensure that such activities
are undertaken with due respect for working conditions as well as the
environment.

 

"It is also with great anticipation that we have filed our applications for
both our Amitsoq Graphite Mine and our future Graphite AAM Plant to be
designated as Strategic Projects under the EU's Critical Raw Materials Act.
Becoming a Strategic Project will not only provide access to the public
financing of our work programmes but also enhance our profile and
attractiveness to potential offtakers and other strategic partners.

 

"Lastly, I am pleased to report that we have now sent our Project Description
for the Amitsoq Mine to the Government of Greenland for final approval, prior
to the public consultation which is expected to take place this autumn. This
is an important step towards the grant of an Exploitation Licence for the
project."

 

 

 

 

 

 

Figure 1, showing the location of Longum Nord (labelled "Longum"). Note that
the buildings shown are a graphic representation of expected future
development. The industrial road connecting the Port of Arendal (Arendal Havn)
with the industrial sites is shown in green and will be extended into Longum
Nord. Morrow's Gigafactory is also shown.  A motorway runs between Morrow's
Gigafactory and Longum Nord, connecting Arendal and southern Norway with the
capital city, Oslo (source: Eyde Materials Park).

 

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.

 

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. Actual results achieved may vary from the information provided herein
as a result of numerous known and unknown risks and uncertainties and other
factors.

 

**ENDS**

 

For further information, please contact:

 GreenRoc Strategic Materials 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 (Broker)                                                               +44 20 3179 5300

 Nick Lovering/Adam Pollock

 St Brides Partners Ltd (Financial PR & IR) Paul Dulieu / Susie Geliher /      +44 20 7236 1177
 Isabelle Morris

 

About GreenRoc

GreenRoc Strategic Materials Plc is an AIM-quoted company which is led by a
group of highly experienced mining industry professionals.

 

GreenRoc is developing two significant critical raw material projects in
Greenland:

 

·     The Amitsoq Graphite Project, 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%.

 

About Amitsoq

·     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.

·     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.

·     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.

·     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.

·     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.

·     In GreenRoc's test work programmes:

o  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.

o  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.

o  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.

·     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.

·     In relation to that downstream business, GreenRoc has now completed
a Feasibility Study into the establishment of a graphite spheronisation
processing plant to produce cSPG from graphite concentrate delivered from
Amitsoq. This Feasibility Study has been part-financed by a grant of
approximately £250,000 from the UK's Automotive Transformation Fund and the
results were published in the announcements of 7 May and 10 July 2024 which
showed a post-tax NPV8 for the Project of US$621M, an IRR of 26.5% and capex
estimated at US$340M (including a 25% contingency).

·     Following a detailed evaluation process, the European Raw Materials
Alliance 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).

·     The Company recently received a Letter of Interest from the US EXIM
Bank with an indication of its preparedness to finance up to US$3.5M of the
Company's work program on the Amitsoq mine and the downstream cSPG (or AAM)
plant (see RNS of 15 April 2024).

 

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