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    GGG   AU000000GGG4

GREENLAND MINERALS LIMITED

(GGG)
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Greenland Minerals and Energy : Fully Underwritten Renounceable Rights Issue to Fund Mining License Application for the Kvanefjeld Project

06/09/2014 | 02:19pm EDT

ASX: GGG

Company Announcement, June 6th, 2014

Fully Underwritten Renounceable Rights Issue to Fund Mining License Application for the Kvanefjeld Project

Underwritten amount to raise $8.87 million to fund Mining Licence Application

Strong support from institutional and sophisticated investors in Australia and Europe

Book significantly oversubscribed

Attractive pricing - 30% discount to 1 month VWAP of 14.3 cents and 42% discount to 3 months VWAP of 17.1 cents

Free attaching options (exercise price 20 cents, 30 June 2016) to be listed

Shareholders can apply for additional shares above entitlements, guaranteed via the purchase of additional rights

Rights to start trading from 12 June 2014

Greenland Minerals and Energy Limited ("GMEL" or "the Company") is pleased to announce a fully underwritten renounceable rights issue to raise A$8.87 million. Net proceeds in conjunction with existing cash reserves will be used to finalise a mining license application for the Kvanefjeld rare earth - uranium project, strategically located in southern Greenland.

The offer will be made to shareholders on a two for thirteen basis at the issue price of A$0.10, which represents a 30% discount to the 1 month volume weighted average price (VWAP) of A$0.143 and a

42% discount to the 3 month VWAP of A$0.171.

Shareholders will also receive one free attaching option, exercisable at $0.20 with a term of 2 years for every one new share issued. Both new shares and new options will be listed.

Shareholders will be given the opportunity to apply for additional shares in excess of their entitlement, however, allocations are not guaranteed. The issue is renounceable and shareholders will be able to guarantee an increase to entitlements by the purchase of additional rights.

The Company is very pleased with the strong demand received from Australian and European institutional and sophisticated investors, including Danish pension funds. The bookbuild closed significantly oversubscribed and the Company is pleased with the level of demand that reflects Kvanefjeld's standing as an emerging world‐class specialty metals project, which is now approaching the permitting pipeline.

Patersons Securities Limited acts as Lead Manager and the Underwriter. Wimmer Financial LLP and

CPS Capital Group Pty Ltd act as co‐managers.

The net proceeds in conjunction with existing cash reserves will be used to complete key components of a mining license application, including Environmental and Social Impact Assessments, improving the quality of mineral resources and to seek the establishment of 'measured' category resources, engineering design work and updated cost estimates. The Company will also continue to progress discussions with key development partners, including tier‐one rare earth industry participant China Non‐Ferrous Metal Co (NFC) as noted in the company's announcement on 24

March 2014.

The Directors of GMEL are extremely pleased to be able to offer eligible shareholders the opportunity to participate in the rights issue, which will see the Company well‐funded to complete the next major milestone for Kvanefjeld with the finalisation and lodgement of a mining license application.

GREENLAND MINERALS AND ENERGY LIMITED TIMETABLE FOR RENOUNCEABLE RIGHTS ISSUE

Event

Business Day

Date

Lodgement of prospectus and

Appendix 3B

Friday, 6/6/14

Day 0

0

Tuesday, 10/6/14

Notice to security holders.

1

Wednesday, 11/6/14

Ex date and Rights Trading commences

2

Thursday, 12/6/14

Record date

4

Monday, 16/6/14

Despatch of Prospectus with Entitlement and Acceptance Form.

7

Thursday, 19/6/14

Rights Trading ends

12

Thursday, 26/6/14

Securities quoted on a deferred settlement basis

13

Friday, 27/6/14

Closing Date for acceptance of

Entitlement

17

Thursday, 3/7/14

Notification to ASX of undersubscriptions

20

Tuesday, 8/7/14

Issue date and end of deferred settlement trading.

22

Thursday, 10/7/14

Normal trading

23

Friday, 11/7/14

The Company has obtained a waiver from the ASX to permit it to not send notice to option holders notifying them of the rights issue and participation in the issue by exercising their options. This waiver relates to both existing series of options being 25,769,191 quoted options exercisable at 60 cents before 5 October 2014 and 4,999,520 unquoted options exercisable at 75 cents before 15

October 2014.

About the Kvanefjeld Project

The Kvanefjeld project is centred on the northern Ilimaussaq Intrusive Complex in southern Greenland. The project includes several large scale multi‐element resources including Kvanefjeld, Sørensen and Zone 3. Global mineral resources now stand at 956 Mt (JORC‐code compliant), containing 575Mlb's U3O8, and 10.33Mt total rare earth oxide. The deposits are characterised by thick, persistent mineralisation hosted within sub‐horizontal lenses that can exceed 200m in true thickness. Highest grades generally occur in the uppermost portions of deposits, with overall low waste‐ore ratios. Less than 20% of the prospective area has been evaluated, with billions of tonnes of lujavrite (host‐rock to defined resources) awaiting resource definition.

While the resources are extensive, a key advantage to the Kvanefjeld project is the unique rare earth and uranium‐bearing minerals. These minerals can be effectively beneficiated into a low‐mass, high value concentrate, then leached with conventional acidic solutions under atmospheric conditions to achieve particularly high extraction levels of both heavy rare earths and uranium. This contrasts to the highly refractory minerals that are common in many rare earth deposits.

The Kvanefjeld project area is located adjacent to deep‐water fjords that allow for shipping access directly to the project area, year round. An international airport is located 35km away, and a nearby lake system has been positively evaluated for hydroelectric power.

GMEL finalised a comprehensive, multi‐year pre‐feasibility program in March 2012 that focussed on identifying and evaluating the best possible process flow sheet for the Kvanefjeld project, taking into account economic metrics, environmental considerations, technical and market risk. A feasibility‐level Mine and Concentrator Study was released in early 2013 following successful pilot plant operations, and the overall process design package has been completed. Continuous testwork programs have demonstrated the production of high purity rare earth concentrates. All study outcomes have been extremely positive and reiterate the potential for Kvanefjeld to become a long‐life, cost competitive operation. A large heavy REE output and significant uranium output differentiate Kvanefjeld from other potential emerging RE producers.

Rare earth elements (REEs) are now recognised as being critical to the global manufacturing base of many emerging consumer items and green technologies. Uranium forms an important part of the global base‐load energy supply, with demand set to grow in coming years as developing nations expand their energy capacity.

Kvanefjeld Project ‐ Multi‐Element Resources Classification, Tonnage and Grade

Contained Metal

Cut‐off

Classification M tonnes TREO2 U3O8 LREO HREO REO

Y2O3

Zn

TREO

HREO Y2O3

U3O8

Zn


(U O ppm)1

Kvanefjeld ‐ March 2011

Mt ppm ppm ppm ppm ppm ppm ppm Mt Mt Mt M lbs Mt
150 Indicated 437 10929 274 9626 402 10029 900 2212 4.77 0.18 0.39 263 0.97
150 Inferred 182 9763 216 8630 356 8986 776 2134 1.78 0.06 0.14 86 0.39
150 Grand Total 619 10585 257 9333 389 9721 864 2189 6.55 0.24 0.53 350 1.36
200 Indicated 291 11849 325 10452 419 10871 978 2343 3.45 0.12 0.28 208 0.68
200 Inferred 79 11086 275 9932 343 10275 811 2478 0.88 0.03 0.06 48 0.20
200 Grand Total 370 11686 314 10341 403 10743 942 2372 4.32 0.15 0.35 256 0.88
250 Indicated 231 12429 352 10950 443 11389 1041 2363 2.84 0.10 0.24 178 0.55
250 Inferred 41 12204 324 10929 366 11319 886 2598 0.46 0.02 0.03 29 0.11
250 Grand Total 272 12395 347 10947 431 11378 1017 2398 3.33 0.12 0.27 208 0.65
300 Indicated 177 13013 374 11437 469 11906 1107 2414 2.30 0.08 0.20 146 0.43
300 Inferred 24 13120 362 11763 396 12158 962 2671 0.31 0.01 0.02 19 0.06
300 Grand Total 200 13025 373 11475 460 11935 1090 2444 2.61 0.09 0.22 164 0.49
350 Indicated 111 13735 404 12040 503 12543 1192 2487 1.52 0.06 0.13 98 0.27
350 Inferred 12 13729 403 12239 436 12675 1054 2826 0.16 0.01 0.01 10 0.03
350 Grand Total 122 13735 404 12059 497 12556 1179 2519 1.68 0.06 0.14 108 0.31

Sørensen ‐ March 2012

150 Inferred 242 11022 304 9729 398 10127 895 2602 2.67 0.10 0.22 162 0.63
200 Inferred 186 11554 344 10223 399 10622 932 2802 2.15 0.07 0.17 141 0.52
250 Inferred 148 11847 375 10480 407 10887 961 2932 1.75 0.06 0.14 123 0.43
300 Inferred 119 12068 400 10671 414 11084 983 3023 1.44 0.05 0.12 105 0.36
350 Inferred 92 12393 422 10967 422 11389 1004 3080 1.14 0.04 0.09 85 0.28

Zone 3 ‐ May 2012

150 Inferred 95 11609 300 10242 396 10638 971 2768 1.11 0.04 0.09 63 0.26
200 Inferred 89 11665 310 10276 400 10676 989 2806 1.03 0.04 0.09 60 0.25
250 Inferred 71 11907 330 10471 410 10882 1026 2902 0.84 0.03 0.07 51 0.2
300 Inferred 47 12407 358 10887 433 11319 1087 3008 0.58 0.02 0.05 37 0.14
350 Inferred 24 13048 392 11392 471 11864 1184 3043 0.31 0.01 0.03 21 0.07

Project Total

Cut‐off Classification M tonnes TREO2 U O

LREO HREO REO Y O

Zn TREO HREO Y O U O Zn

3 8 2 3

1

2 3 3 8


(U3O8 ppm)
Mt ppm ppm ppm ppm ppm ppm ppm Mt Mt Mt M lbs Mt
150 Indicated 437 10929 274 9626 402 10029 900 2212 4.77 0.18 0.39 263 0.97
150 Inferred 520 10687 272 9437 383 9820 867 2468 5.55 0.20 0.45 312 1.28

150 Grand Total 956 10798 273 9524 392 9915 882 2351 10.33 0.37 0.84 575 2.25

1There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U O has therefore been used to define the cut‐off grades to maximise the confidence in the resource calculations.

2Total Rare Earth Oxide (TREO) refers to the rare earth elements in the lanthanide series plus yttrium. Note: Figures quoted may not sum due to rounding.

ABOUT GREENLAND MINERALS AND ENERGY LTD.

Greenland Minerals and Energy Ltd (ASX - GGG) is an exploration and development company focused on developing high‐quality mineral projects in Greenland. The Company's flagship project is the Kvanefjeld multi‐ element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. A comprehensive pre‐feasibility study has demonstrated the potential for a large‐scale, cost‐ competitive, multi‐element mining operation. For further information on Greenland Minerals and Energy visit

http://www.ggg.gl or contact:

Roderick Mcillree

Managing Director

+61 8 9382 2322

Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued stakeholder discussions on the social and economic benefits associated with the development of the Kvanefjeld Project.

The information in this report that relates to exploration targets, exploration results, geological interpretations, appropriateness of cut‐off grades, and reasonable expectation of potential viability of quoted rare earth element, uranium, and zinc resources is based on information compiled by Mr Jeremy Whybrow. Mr Whybrow is a director of the Company and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Whybrow has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the

2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Whybrow consents to the reporting of this information in the form and context in which it appears.

The geological model and geostatistical estimation for the Kvanefjeld, Sorensen and Zone 3 deposits were prepared by Robin Simpson of SRK Consulting. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Simpson consents to the reporting of information relating to the geological model and geostatistical estimation in the form and context in which it appears.

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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Financials
Sales 2020 0,16 M 0,12 M 0,12 M
Net income 2020 -3,08 M -2,34 M -2,34 M
Net cash 2020 36,0 M 27,3 M 27,3 M
P/E ratio 2020 -102x
Yield 2020 -
Capitalization 130 M 98,6 M 98,8 M
EV / Sales 2019 2 293x
EV / Sales 2020 2 018x
Nbr of Employees 28
Free-Float 81,4%
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John Lefroy Mair Managing Director & Executive Director
Miles Simon Guy Chief Financial Officer & Secretary
Peng Ho Non-Executive Chairman
Simon Kenneth Cato Non-Executive Director
Xiaolei Guo Non-Executive Director
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