Greenland Mines closes acquisition of Sarfartoq rare earth magnet project

Greenland Mines (Nasdaq: GRML) said it has closed the aquisition of the Sarfartoq project from Neo Performance Materials for $35 million., bringing the the rare earth project into its mining portfolio. 

The closing follows Greenland Mines’ release of an independent Initial Assessment for Sarfartoq, which demonstrated positive project economics.  

The project has an estimated pre-tax net present value (NPV) of approximately $2.05 billion and a pre-tax internal rate of return (IRR) of 118.6%, including Indicated and Inferred Mineral Resources.  

The Initial Assessment is based entirely on the ST1 deposit, which occupies under 1% of the 191-square-kilometer Sarfartoq mineral exploration license, with five additional known rare earth occurrences along the approximately 32-kilometer outer ring structure remaining largely untested, Greenland Mines said. 

The company has called the project one of the island’s “most advanced and compelling rare earth projects,” citing its high-grade nature and favorable Arctic logistics.  

Located roughly 60 km from Kangerlussuaq in the southeast, the project is the site of a carbonatite-hosted deposit strongly enriched in neodymium-praseodymium, widely used to manufacture high-strength NdFeB permanent magnets.  

The project carries a historic NI 43-101 Mineral Resource Estimate and a Preliminary Economic Assessment, is supported by more than 15 years of exploration work and over 23,000 meters of drilling.   

“The Sarfartoq acquisition is closed, and one of the Western world’s top-tier upstream rare earth magnet projects is now a Greenland Mines asset,” Greenland Mines president Dr. Bo Møller Stensgaard said in a news release. 

 “At 2025 consumption levels, the NdPr oxide we plan to produce from ST1 alone would represent roughly a third of all NdPr oxide refined outside China, in every one of the project’s nine scheduled operating years — and ST1 forms only a small part of a much larger system. Our technical team is back on the ground at Sarfartoq this month, and we move immediately from acquisition to further resource growth development.” 

Greenland Mines said it intends to move directly into the next phase of Sarfartoq’s development, including targeted infill drilling, pilot-scale metallurgical test work, mine engineering planning and continued environmental and social baseline studies, advancing the project toward a pre-feasibility study.