REG - GreenRoc Strateg PLC - Operational Update

GreenRoc Strategic MaterialsAnnouncement

25/02/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250225:nRSY2807Ya&default-theme=true

RNS Number : 2807Y  GreenRoc Strategic Materials Plc  25 February 2025

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

 

25 February 2025

GreenRoc Strategic Materials plc

("GreenRoc" or the "Company")

 

Operational Update

 

GreenRoc Strategic Materials Plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is pleased to provide
the following operational update.

 

EU Strategic Project application update

On 27 August 2024, the Company announced that it had submitted two
applications to the EU with regard to designation of Strategic Project status
under the EU's Critical Raw Materials Act ("CRMA"): One application was for
the extraction of graphite from the Amitsoq graphite deposit in Greenland and
the other was for the processing of graphite concentrate into active anode
material at a planned processing plant in South Norway. The
Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs
(https://commission.europa.eu/about/departments-and-executive-agencies/internal-market-industry-entrepreneurship-and-smes_en)
(DG GROW), which is administering the application process, has confirmed that
the first batch of Strategic Projects will be announced in March 2025 and
GreenRoc will update the market as soon as the results of its applications are
confirmed.

 

Exploitation Licence application update

Further to the Company's announcement of its application for an Exploitation
Licence for Amitsoq in September 2024 and its update thereon on 15 November
2024, the external review of the resource estimate that was required by the
Government of Greenland has now been completed. Consequently, the application
is now ready for final approval by the Greenland Government before it proceeds
into the statutory 35 days of public consultation. The timetable for final
Governmental approval has been modestly impacted by the calling of a general
election in Greenland on 11 March 2025, meaning that the approval decision
will necessarily have to be taken by the new Government, Accordingly, it is
anticipated that the public consultation will start in H2, 2025 with projected
granting date by the end of 2025.

 

Digbee submission

As it announced on 28 May 2024, the Company has commissioned Digbee to report
on the Company's Environmental, Social, and Governance ("ESG") performance at
its Amitsoq graphite project. Digbee is a technology and research platform
focused on the mining and minerals industry. It provides ESG disclosure and
assessment solutions tailored for mining companies, investors, and
stakeholders. Digbee helps mining companies align with global ESG standards,
improve transparency, and mitigate risks, making it easier for them to
demonstrate sustainability commitments. GreenRoc's ability to demonstrate, as
a developer and future producer of graphite anode, that it is taking steps to
implement a high degree of ESG compliance, is considered a key element in any
future offtake discussions with car and battery manufacturers.

 

GreenRoc submitted its responses to Digbee's comprehensive ESG questionnaire
last autumn and has now received Digbee's report on its ESG performance at
Amitsoq. GreenRoc has achieved an overarching score of BB with a range of CC
to AA. This means that on average it scores BB but has the potential to
reflect a CC or AA depending on action taken to manage its ESG. The top 5
rating bands (AAA - BB) give credit for present positives / opportunities
whereas the bottom 5 rating bands (B - D) reflect present negatives / threats.
The Board considers an initial BB rating to be a creditable result for a first
assessment and a solid foundation which the Company which will be able to
build upon as the Amitsoq project moves through the development phase.

 

 

Purification Testwork

Using graphite concentrate produced from an underground bulk sample previously
collected at Amitsoq, GreenRoc has contracted ProGraphite in Germany to
conduct a series of extended purification tests in order to optimise and
demonstrate the application of purification techniques from a 10kg graphite
concentrate and to subject the spheronised graphite to tests using sodium
hydroxide as the main purification agent, followed by a sulphuric acid finish
to achieve the required high purification state of >99.95% graphite. As
described earlier, a hydrofluoric acid-free purification provides several
opportunities for reducing the environmental footprint and also reduces
hazardous risks and the overall operating costs of processing graphite into
active anode material.

 

Attending PDAC in Toronto

In early March, the World's Premier Mineral Exploration & Mining
Convention, will take place at the Prospectors and Developers Association of
Canada's ("PDAC") convention in Toronto. On Monday 3 March, GreenRoc's CEO
Stefan Bernstein will give a presentation at the Greenland Day, an annual
event arranged at PDAC by the Government of Greenland and the Greenland
Business Association. Attendees at the Greenland Day are expected to include
senior officials and agencies of the European Union, the United States,
Denmark and Greenland.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"The processing of the first round of applications to become a Strategic
Project under the EU's CRMA will soon be concluded. We remain hopeful that the
Amitsoq graphite mine and planned downsteam graphite anode plant will be given
Strategic Project status in this round.  It is anticipated that this status
will help us access finance from more traditional financial institutions such
as pension funds, that have been largely unavailable to us previously .

 

"To that end, I believe that our joining the Digbee platform for ESG
disclosure and obtaining an initial BB-rating should provide financial
institutions with evidence of our commitment to the highest ESG standards. The
rating provides a solid baseline for us to monitor and improve our ESG
performance during our development of the Amitsoq graphite mine to production.

 

"The call for a general election in Greenland was anticipated, as the law
stipulates the election must be held every four years, with the last election
having been in 2021. We do not anticipate that the formation of a new
Government will involve a lengthy process so, with our application for an
Exploitation Licence at Amitsoq already submitted for approval by the
Government before it is put out to public consultation, we still expect our
application to be considered this spring.

 

"Through our graphite consultants ProGraphite we continue to undertake
advanced studies for the processing of our graphite concentrate into active
anode material ("AAM") for electric vehicles. We have already proven that
Amitsoq graphite is very amenable to spheronisation and, as part of our
commitment to environmentally sound production of AAM, we are now exploring
ways not only to completely substitute sodium hydroxide in the place of
hydrofluoric acid, but also to decrease the amount of reagent required so as
to reduce the cost of production.

 

"Finally, I'm delighted once again to have the opportunity to present
GreenRoc's world-class Amitsoq graphite project at PDAC, the world's premier
mining conference. Whilst there, I also intend to continue our discussions
with a number of potential international strategic and financial partners."

 

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 Mining plc                                  +44 20 3950 0724

 Stefan Bernstein, CEO                                E-mail: info@greenrocplc.com (mailto:info@greenrocplc.com)

 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

 

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 and the Company received a
Letter of Interest from the Export and Investment Bank of Denmark (EIFO) in
January, 2025.

 

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%.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDPPUGCPUPAPUC