Greenland Minerals and Energy Ltd (ASX:GGG) has exited an ASX trading halt this morning after replying to a Price and Volume Query.
In a reply to the ASX, GGG noted: "the company is relying on Listing Rule 3.1A, as the information concerns incomplete negotiations and the information is insufficiently definite to warrant disclosure.
"The company has non-binding agreements in place with third parties concerning the company’s 100% owned Kvanefjeld Project, and potential commercial involvement.
"Due diligence in relation to the non-binding agreements is ongoing, and of considerable breadth owing the jurisdictions to which the project is associated (Greenland, Denmark, Australia).
"At this point in time, the outcome of the due diligence processes, associated timelines, or the nature of any formal agreements remains uncertain.
"As a result, there is no level of certainty that any binding agreements will be reached.
"The company outlined in the December 2015 Quarterly Report, and 2015 Annual Report that with the permitting process for Kvanefjeld underway, an increased focus would be placed on commercial development, and progressing strategic partner relationships.
"Non-binding agreements and associated due diligence are in-line with this stated objective."
Kvanefjeld is one of the world's most advanced rare earth and uranium projects with defined JORC compliant resources of over 1 billion tonnes containing 11.1 million tonnes of rare earth oxide and 593 million pounds of uranium.
As per the updated feasibility study, the net present value of the project is US$1.59 billion and the internal rate of return is 43.4%.