Greenland Resources to receive 500,000-euro funding

Executive Summary

• Greenland Resources Inc. announced a financing agreement with EIT RawMaterials (co-funded by the EU) to receive up to €500,000 (~$815,000) for testing innovative magnesium extraction technologies from process saline water at its Malmbjerg project.
• The funding is structured as an acquisition of shares in a Greenlandic subsidiary, which are convertible into common shares of Greenland Resources Inc. via put/call options, contingent on Cboe approval.
• Concurrently, the company intends to complete a non-brokered private placement of up to 112,122 shares at $1.65 per share for up to ~$185,000 in gross proceeds.

Key Details

• EIT RawMaterials Funding:
  • Total funding amount: €500,000 (approximately $815,000).
  • Purpose: Testing innovative technologies for extracting magnesium from process saline water at the Malmbjerg molybdenum project.
  • Disbursement: At least 75% (€375,000) advanced immediately; remaining funds payable upon approval of final project and financial reports.
  • Structure: Investment made via acquisition of shares in Greenland Resources A/S (wholly owned subsidiary).
  • Conversion Terms: Subsidiary shares are convertible into common shares of Greenland Resources Inc. via put/call options.
  • Initial Conversion Price: $1.65 per share (if exercised within 45 days of the release date).
  • Share Issuance (Full Funding Scenario): If the full €500,000 is advanced and converted at the initial price, the company will issue 493,939 common shares for gross proceeds of $814,999.35.
  • Remaining Funds Conversion: If funds remain and options are exercised after 45 days, the share count is determined by the VWAP of the 20 consecutive trading days prior to exercise, subject to a minimum deemed issue price of $1.65 per share.
• Private Placement:
  • Type: Non-brokered private placement.
  • Size: Up to 112,122 company shares.
  • Price: $1.65 per share.
  • Gross Proceeds: Up to approximately $185,000.
  • Status: Subject to Cboe approval; expected to close on or around Nov. 20, 2025.
• Project Context (Malmbjerg):
  • License: 30-year exploitation license for molybdenum and magnesium received in June 2025.
  • Reserves: 245 million tonnes at 0.176% MoS2 (571 million pounds contained molybdenum).
  • Production Profile: Average annual production of 32.8 million pounds of contained molybdenum metal for years 1-10.
  • Magnesium Potential: Uses ~35,000 cubic meters/day of saline water with ~900 ppm magnesium; company is working on extraction technologies and incorporating magnesium into feasibility study economics.
• Strategic Context:
  • EIT RawMaterials views magnesium as mission-critical for Europe, seeking to reduce dependence on China (which supplies ~87% of global magnesium).
  • Greenland Resources has applied for further funding from other Horizon Europe programs to finance the equity portion of the project's capital expenditures.

Notable Quotes

• Bernd Schafer, CEO and Managing Director, EIT RawMaterials: "Magnesium is mission-critical for Europe's competitiveness -- from lightweight mobility to defence -- and yet the EU depends on China for nearly all its supply... Our investment in Greenland Resources is a strategic response to the global race to secure critical raw materials, unlocking value from innovation and accelerating the CRMA goals to diversify supply and strengthen resilience for European industry."
• Ruben Shiffman, Executive Chairman, Greenland Resources: "The equity investment from EIT RawMaterials, funded by Horizon Europe, 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 and proves that EU public funding can be invested in our Greenlandic subsidiary and swapped to our listed parent company."