The share price in Greenland Minerals and Energy (ASX: GGG) increased 6c following news the Mineral Resources Act had come into effect on New Year's Day in Greenland.
During the morning trade, the company was trading 6c, or 9.5%, higher at 69c.
Managing Director Roderick McIllree said the company viewed the step as a key milestone for Greenland on its path to self rule.
"The next step on this path would be the complete handover of mineral and oil rights from Denmark to Greenland, a process expected to be completed in the near future," Mr McIllree said.
"The company looks forward to the continued constructive dialogue with all Greenlandic stakeholders regarding the development of the multi-element Kvanefjeld Project and will keep the market informed as to developments," Mr McIllree said.
The Government of Greenland approved the Act in November.