Greenland Resources Announces Financing From EIT RawMaterials, Which Is Co-Funded by the EU

Executive Summary

• Greenland Resources entered a Financial Sustainability Agreement with EIT RawMaterials GmbH, securing €500,000 (≈C$815k) to fund magnesium‑extraction testing at the Malmbjerg molybdenum project.
• The company will simultaneously conduct a non‑brokered private placement of up to 112,122 common shares at $1.65 per share, targeting gross proceeds of ≈ $185,000, with closing expected around 20 Nov 2025 (subject to Cboe approval).
• The agreement includes put and call options allowing conversion of the €500k equity investment into Company Shares at a deemed issue price of $1.65 per share, potentially issuing 493,939 shares for gross proceeds of $814,999.35 if all funds are advanced as “Initial Funds.”

Key Details

• Funding Source: EIT RawMaterials GmbH (EU Horizon Europe programme) – €500,000 total, with at least 75% (€375,000) payable immediately as “Initial Funds.”
• Use of Funds: Test innovative low‑carbon technologies to extract magnesium from process saline water at the Malmbjerg project.
• Equity Structure:
• Investment made via acquisition of shares in Greenland Resources A/S (GRAS), a wholly owned Greenlandic subsidiary.
• Shares are convertible into Company common shares through put and call options exercisable by either party up to six months after signing.
• Conversion Mechanics:
• Initial conversion to occur contemporaneously with the private placement closing (≈ 20 Nov 2025) at a deemed issue price of $1.65 per share.
• If all €500k is advanced as Initial Funds, 493,939 Company Shares will be issued for gross proceeds of $814,999.35.
• Remaining Funds (if any) would be converted later using a formula based on VWAP over the prior 20 trading days, with a floor price of $1.65 per share.
• Private Placement: Up to 112,122 Company Shares at $1.65 each; expected gross proceeds ≈ $185,000; subject to Cboe Canada Exchange approval; anticipated closing ~20 Nov 2025.
• Strategic Context: Magnesium is a EU‑designated critical raw material; the partnership aims to reduce European reliance on China (≈ 87% of global supply). The Malmbjerg project also holds a 30‑year exploitation license for molybdenum and magnesium (granted June 2025).
• Management Comments:
• Bernd Schäfer (CEO, EIT RawMaterials) highlighted the strategic importance of securing European magnesium supplies.
• Ruben Shiffman (Executive Chairman, Greenland Resources) emphasized that the equity investment sets a precedent for further EU strategic investments and supports larger funding applications.

Notable Quotes

• “Magnesium is mission‑critical for Europe’s competitiveness … our investment in Greenland Resources is a strategic response to the global race to secure critical raw materials.” – Bernd Schäfer, CEO, EIT RawMaterials.
• “The equity investment … will not only allow us to continue our work on magnesium using innovative low carbon technologies but it also sets an important execution precedent for further EU strategic investments.” – Ruben Shiffman, Executive Chairman, Greenland Resources.