Greenland looks at lithium play in Spain
Thursday, July 14th, 2022
ASX-listed rare earths developer Greenland Minerals (GGG) has moved to increase its exposure to critical minerals, signing a binding heads of agreement with Technology Metals Europe (TME) and its sole shareholder Welsbach Holdings for the right to earn-in a 51% interest in TME.
TME is the sole owner of the Villasrubias exploration permit, in Spain, which is prospective for lithium.
Under the terms of the agreement, GGG can earn its interest in TME by spending A$3-million on a jointly agreed works programme in relation to the tenement within three years from the date of satisfaction of the conditions precedent.
Welsbach is a related party of GGG by virtue of being an entity controlled by GGG MD Daniel Mamadou, one of three directors of Welsbach and owner of a controlling shareholding interest in Welsbach.
The transaction is subject to a number of conditions, including completion of due diligence by GGG on TME and its assets, and GGG obtaining shareholder approval. The company is targeting a shareholder meeting in September.
GGG recently secured litigation funding to fully fund the arbitration costs in the dispute with the government of Greenland and the government of the Kingdom of Denmark over the future of its Kvanefjeld rare earths project after the Greenland government in November banned uranium mining, impacting the development of the Kvanefjeld project.