AEX Gold Inc (AIM:AEXG, TSX-V:AEX) said it acquired two exploration licences in South Greenland from Orano Group, for a zero upfront amount and a royalty on future production, as it sees a significant opportunity for the discovery of strategic minerals.
The licence area increases AEX’s exposure to metals such as nickel, copper, zinc, lead, titanium, vanadium, graphite and rare earth minerals, as well as additional gold resources across the Nanortalik and Tartoq gold belts.
The acquisition takes AEX's total land package in South Greenland to 7,615.85 square kilometres, making it the largest licence holder in South Greenland and the third-largest in Greenland.
"We are excited to be substantially increasing our exposure to strategic metals and rare earth elements across Greenland,” said AEX chief executive Eldur Olafsson. “Greenland has the potential to become a crucial supplier of these vital minerals to the Western world, and AEX intends to be a key player in this.”
It noted that South Greenland is currently known to host 1.5% of global rare earth element reserves and that the European Commission has estimated that this could rise to as high as 9.2% with further exploration.
The licenses are acquired in exchange for a 0.5% gross revenue royalty based on any future mineral sales from the license area. The royalty is capped at US$10mln. Orano has a right of first refusal on any sales or transfer of licenses.
The acquisition is subject to approval from the Greenland government.