Greenland Resources Receives Final Approval for a $7 Million Non-Repayable Contribution From the Government of Canada
Greenland Resources Inc. announced that the Government of Canada has signed an agreement for a non-repayable contribution of $7,000,000 through Natural Resources Canada's Critical Minerals Research, Development and Demonstration (CMRDD) program. This funding supports a metallurgical program to evaluate the feasibility of processing primary molybdenum using saline and fresh water for flotation, while assessing the potential recovery of magnesium and rare earth elements as by-products from the Malmbjerg ore body. The program is scheduled to run until March 2028, with progress updates to be provided periodically.
The grant, valued at $7,000,000 CAD, is a non-repayable contribution sourced from the CMRDD program. Its scope includes evaluating the feasibility of processing primary molybdenum using Canadian expertise, assessing flotation using both saline and fresh water, and assessing the potential recovery of magnesium and rare earth elements as by-products contained within the Malmbjerg ore body and saline water.
In a statement regarding the announcement, the company noted: "Greenland Resources Inc. ... is pleased to announce that, as a follow up to its press release dated March 2, 2026 on a conditional approval, the Government of Canada concluded its final due diligence and has signed an agreement for a non-repayable contribution of $7,000,000..." The company further highlighted the strategic significance of the investment, stating, "Canada is now the first G7 government to invest in mining in Greenland."
The Malmbjerg project is a 100% owned Climax-type primary molybdenum deposit located in central east Greenland. A NI 43-101 Definitive Feasibility Study was completed in 2022 by Tetra Tech. The project’s financial metrics include a capital expenditure (Capex) of US$820 million, a levered after-tax internal rate of return (IRR) of 33.8%, and a payback period of 2.4 years based on a US$18/lb molybdenum price.
The deposit holds Proven and Probable Reserves of 245 million tonnes at 0.176% MoS2, containing 571 million pounds of molybdenum metal. Average annual production for Years 1-10 is projected at 32.8 million pounds of contained molybdenum metal at an average grade of 0.23% MoS2. An exploitation license for molybdenum and magnesium was awarded on June 19, 2025. The project is also recognized as a priority EU project under the European Commission’s RESourceEU initiative.