REG - GreenRoc Strateg PLC - Financing Letter of Interest from EIFO Denmark

GreenRoc Strategic MaterialsAnnouncement

15/01/2025 07:00

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RNS Number : 3344T  GreenRoc Strategic Materials Plc  15 January 2025

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

 

15 January 2025

GreenRoc Strategic Materials Plc

("GreenRoc" or the "Company")

 

Amitsoq Update

Financing Letter of Interest from Export and Investment Fund of Denmark

 

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 received a Letter of Interest ("LoI") from the Export and
Investment Fund of Denmark ("EIFO") for the provision of funding to GreenRoc's
Amitsoq Graphite Project in South Greenland ("Amitsoq" or the "Project").

 

Highlights

 

·     EIFO has issued a non binding Letter of Interest confirming its
interest in providing funding to GreenRoc for Amitsoq.

·     EIFO usually issues AAA-rated guarantees, backed by the Danish
State, of loans provided by financial institutions. EIFO has been involved in
the financing of a significant number of transactions and projects across all
continents.

·     The potential financial support would be directed towards the
purchase of equipment as well as services from FLSmidth a/s and other Danish
suppliers.

·     EIFO has extensive and positive experience working with FLSmidth on
projects worldwide.  GreenRoc has been working successfully with FLSmidth for
the past 12 months on the processing of an Amitsoq bulk sample at the latter's
US facilities.

·     GreenRoc will now work with EIFO to work up a detailed financing
proposal.  The issuance of an EIFO guarantee would be subject, inter alia, to
normal and customary project due diligence.

 

Details

 

GreenRoc has received a LoI from EIFO in which EIFO expresses its interest in
assisting in the financing of Amitsoq. The potential financial support will be
directed towards the purchase of equipment as well as services from FLSmidth
a/s and other Danish suppliers. These could include pilot flotation plant,
test work and design and costing of graphite ore beneficiation plant.

 

FLSmidth a/s is a Danish multinational engineering company specialising in the
design and supply of equipment, solutions, and services for the mining and
cement industries. Founded in 1882, the company provides technology,
equipment, and services that enable sustainable production and processing of
natural resources, focusing on energy efficiency, emissions reduction, and
resource optimisation. It operates globally, serving mining companies, cement
manufacturers, and other industrial sectors. GreenRoc has been working with
FLSmidth for the past 12 months, with an Amitsoq bulk sample currently being
submitted to a test work programme work at FLSmidth's laboratory facilities in
Salt Lake City, USA. The aim of the work is to determine the best methods for
the beneficiation of Amitsoq graphite ore into graphite concentrate. The
testwork involves the use of FLSmidth's newly developed pressurized flotation
cell REFLUX(TM), as described in GreenRoc's RNS of 2 August 2023. The
REFLUX(TM) system, with its smaller footprint, higher throughput, increased
yield and reduced water and energy consumption, has significant advantages
over standard flotation systems.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"I am very pleased to receive this Letter of Interest from EIFO. It is my
expectation that it will result in the provision of some of the funding which
will allow GreenRoc to proceed towards the completion of our Feasibility
Studies and eventually to the construction of our planned mine at Amitsoq.

 

"Graphite, the largest mineral component used in batteries, has been
identified as a critical strategic mineral by the EU. This important
indication of support from EIFO underlines its importance and is also, in my
view, a clear sign of the growing interest from governments and public
agencies in our graphite project and tangible support of our aim to become a
major producer of responsibly sourced and processed graphite anode material
for the battery industry."

 

FLSmidth's Peter Flanagan, SVP, Head of Capital Sales, commented:

""Bridging the supply-demand gap for critical minerals required for the global
energy transition is a key priority around the world. This requires new mining
projects are developed, and FLSmidth is happy to support the development of
early stages projects by leveraging our deep industry knowhow and expertise,
highly skilled employees, large installed base and world-class technology
offerings. GreenRoc's Amitsoq graphite project is an example of a promising
project that can help secure a more sustainable and resilient supply chain for
this critical mineral. We are committed to continue supporting this project
and look forward to see its realisation."

 

Peter Boeskov, CCO at EIFO, says:

"Graphite is forecasted to face a global supply deficit by the end of this
decade. GreenRoc's graphite mining project plays a vital role in supporting
the green transition by supplying a critical raw material for the rapidly
expanding EV battery market. This aligns well with EIFO's strategic
objectives, and we are happy to promote activities in Greenland as well as
supporting FLSmidth and other Danish suppliers to the mining sector. We
anticipate that the Amitsoq mine, once operational, will contribute to
Greenland's economy by creating numerous local jobs and driving GDP growth. I
look forward to continuing our collaboration with GreenRoc and I am optimistic
about a role for EIFO."

 

 

About EIFO - the Export and Investment Fund of Denmark:

EIFO is the national promotional bank and export credit agency of Denmark
combined in one financial institution. Active in over 100 countries, and with
a total business volume of more than EUR 20 billion, EIFO provides financial
solutions for Danish companies and their global partners, while also investing
in startups and funds. We exist to open doors for Danish global business,
accelerate the green transition, promote new technologies and develop the
Danish defense industry. With our willingness to take risks in financing, EIFO
paves the way for those who dare to think bigger.

 

EIFO has extensive and positive experience working with FLSmidth on projects
worldwide. EIFO has coorporated with FLSmidth for a 100 years and has
participated in the financing of numerous FLSmidth projects.

 

About FLSmidth a/s:

FLSmidth is a full flowsheet technology and service supplier to the global
mining and cement industries. FLSmidth enables its customers to improve
performance, lower operating costs and reduce environmental impact.
MissionZero is FLSmidth's sustainability ambition towards zero emissions in
mining and cement by 2030. FLSmidth works within fully validated Science-Based
Targets, have a clear commitment to improving the sustainability performance
of the global mining and cement industries and aim to become carbon neutral in
own operations by 2030.

 

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) Charlotte Page / Paul Dulieu      +44 20 7236 1177

EIFO

Ina Bjerregaard-Castenborg, Media Relations Lead, +45 2065 2114

About GreenRoc

GreenRoc Strategic Materials Plc is an AIM-quoted company, which is led by a
group of highly experienced mining industry professionals. The Company is
focused on fast-tracking the Amitsoq Graphite Project in Greenland into a
producing mine to meet critical demand from Electric Vehicle ('EV')
manufacturers in Europe and North America for new, high grade and
conflict-free sources of graphite.  Amitsoq  is 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 significant
further upside beyond this. Test work has proven that Amitsoq graphite can be
readily upgraded to high-grade, anode-quality graphite, with higher than
99.95% purity and relatively little energy input, boding well for future
production costs and sustainability commitments.

 

A Preliminary Economic Assessment released on 31 October 2023 gives 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. A Feasibility Study into the
establishment of a graphite spheronisation processing plant (published in May
and July 2024) shows 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).  The
Company has signed a Letter of Intent to secure an area for the Company's
future Active Anode Materials Plant in Southern Norway and has received
expressions of support from the European Raw Materials Alliance and the US
EXIM Bank for future development. In November 2024, GreenRoc and Morrow
Batteries a/s, a Norwegian Gigafactory signed a MoU to work together on a
regional supply chain of battery anode material.

 

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

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