access to untapped minerals resources

Greenland loosens ties with Denmark - access to untapped minerals resources
by Proactive Investors company news image

In an historic referendum, the people of Greenland have voted to shed their 300-year-old ties with Denmark. Greenland's 39,000 voters voted yes in a poll that will expand their ability to self-govern as well as make Greenland - not Denmark - the beneficiary of enormous, untapped mineral resources - including uranium, oil and gas and rare earth resources.

Almost 76 per cent of the voters were in favour, providing a clear mandate for self-rule. Denmark, which colonised Greenland and granted home rule almost 30 years ago, is expected to maintain influence over matters including foreign policy and defence as well as continue to provide two-thirds of Greenland's budget revenue.

However, new laws will also now permit Greenland to take control of and utilise revenues from oil, gas and mineral resources.

Trading Halt

Greenland Minerals has requested a trading halt for its shares until 2 December 2008 so that the company can update the market regarding recent developments and decisions made by the Greenland parliament on 27 November 2008.

Greenland Minerals released an updated inferred resource last month at its Kvanefjeld rare earth, uranium and sodium fluoride project in southern Greenland of 334 million tonnes grading 0.03% uranium oxide (at a cut-off of 0.015%), including 215 Mt at 1.21% rare earth oxide (REO) (up 163%) and 201 Mt at 1.11% sodium fluoride (up 68%).

Greenland Minerals was trading at 26 cents before the trading halt. Cash on hand was $17m at September 2008.