If you look at the following map you will see the location of CNJ's 100% owned Mestersvig Project. This map also shows the location of Greenland Resources' Malmbjerg Molybdenum Deposit, which is part of the overall Mestersvig tenement (although it is not owned by CNJ).
Last Thursday, Greenland Resources announced it has received a non-binding letter of intent (“LOI”) from the major Danish company Topsoe A/S, for the long-term supply of molybdenum from Greenland Resources' Malmbjerg deposit at Mestersvig.
Topsoe is looking to secure a long-term supply of high-quality molybdenum extracted, with the highest of ESG standards, from Greenland Resources' Malmbjerg deposit at Mestersvig (Greenland is part of the Kingdom of Denmark).
Topsoe is a leading global developer and supplier of decarbonization technology, catalysts, and services for the energy transition. Topsoe is headquartered in Denmark and has over 2,100 employees (www.topsoe.com)
It goes without saying, that this news is not only a huge milestone for Greenland Resources' Malmbjerg deposit at Mestersvig, but also potentially for CNJ's 100% owned Mestersvig Project.
In a nutshell, and should this project go ahead, Greenland Resources' will soon commence building establishing a mine as well as a top class infrastucture set-up at their Malmbjerg Molybdenum Deposit at Mestersvig, in order to be able to soon commence shipping their molybdenum metal to Topsoe in Denmark.
This top class infrastucture set-up will entail a very serious investment by Greenland Resources (and potentially also from Topsoe should they wish to do so as part of their supply agreement).
Given that Greenland Resources' Malmbjerg Molybdenum Deposit is part of the Mestersvig tenement (although not owned by CNJ), it is patently obvious that should CNJ soon be able to establish their own major JORC Lead/Zinc/Silver/Copper resource (which IMHO looks highly likely), they will thus find it far easier to set up their own long-term supply agreement with major metals producers in the EU, the US and Canada i.e. CNJ will not only be able to set up a mine, but far more importantly, they will be able to use Greenland Resources' shiny new top class infrastucture set-up at Mestersvig.
This will of course have very serious and very positive implications for both CNJ as well as CNJ investors i.e. the CAPEX and the time taken for CNJ to begin mining their own Lead/Zinc/Silver/Copper resource, will be drastically reduced. IMHO this is a godsend for both CNJ as well as for CNJ investors i.e. it will fast track CNJ's 100% owned Mestersvig Project.
Having said this about CNJ's as yet still 100% owned Mestersvig Project, I can well imagine Greenland Resources' and/or at least one major metal producer in the EU, the US or Canada definitely being interested in entering into a JV with CNJ in order to commence mining at CNJ's Mestersvig Project (although I would think that CNJ will probably have to establish a major JORC Lead/Zinc/Silver/Copper resource estimate before this happens. In fact, it is quite possible that Greenland Resources and/or Topsoe A/S (who are already both well aware of CNJ's Mestersvig Project), may ultimately end up becoming JV partners with CNJ at Mestersvig (this would make a lot of sense to me).
Summarising, normally and traditionally, after discovering and establishing a major JORC mineral resource, a mining companies will take over the reigns (and probably at least 75% of the ownership!) in order to develop the resource further, construct a mine, but far more importantly, they must also build a top class infrastucture set-up (rail, port, power, water, and information and communications technology that will serve their mining operations).
At Mestersvig, through a "shared-use" agreement with Greenland Resources (and/or Topsoe A/S?), this then existing mining-related infrastructure would enormously benefit CNJ (as well as contributing to the sustainable development of the Mestersvig area and helping bridge the infrastructure funding gap which is an ever present hurdle in resource-rich developing countries, where Greenland is a classic example).
From purely an investor perspective (my perspective), this is a huge positive i.e. it will provide CNJ a massive spring board (as well as giving the Mestersvig area enormous credibility as a major future raw materials supply area) and thus allow CNJ to move their Mestersvig Project forward at a very fast pace (as well as supporting additional mining projects and other economic activities and services to the benefit of the major metals producers in the EU, the US and Canada, as well as helping the Greenland people).
Finally, you will notice that the Northern Explorer, which covers mineral exploration in Nordic countries, is covering the latest news out Mestersvig (both Greenland Resources activties, as well as CNJ's activities). In fact, in their recent "Industry News" issue, Mestersvig is featured extensively (both Greenland Resources activities, as well as CNJ's):
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