Eclipse Metals Ltd (ASX:EPM) has gained a new substantial holder in Cerium Pty Ltd following the recent acquisition of the Ivittuut Project in Greenland, which is the world’s largest and only source of naturally occurring cryolite - an extremely rare mineral in commercial quantities.
As part of the consideration for the purchase, Cerium now holds 200 million shares in EPM and has a voting power of 11.36%.
World’s largest historical cryolite mine
Cryolite is a rare mineral proven to act as a beneficial fluxing agent to reduce energy consumption in aluminium production.
Although the mineral has been found in other places, Ivittuut, in the country’s southwest, is the only place where this mineral has been commercially extracted.
The company intends to systematically explore the project which is within a mining-friendly jurisdiction with easy access to Gronnedal port and major North American and European markets.
Consideration for the Ivittuut project.
Further consideration terms
From second completion, the company will also grant to Cerium a 3.5% net profit royalty payable in relation to any mineral product recovered from the tenement and sold.
Another material term of the agreement is that, for so long as Cerium holds at least 19% of the total issued share capital of the company, Cerium will be entitled to nominate one director for appointment to the board.