Greenland Resources Signs MOU With German GMH Gruppe for Molybdenum Supply

Executive Summary

• Greenland Resources signed a memorandum of understanding with GMH Gruppe SE & Co. KG to establish a long‑term off‑take arrangement for ferro‑molybdenum, molybdenum‑oxide and briquettes sourced from the Malmbjerg project in Greenland.
• The agreement positions Greenland Resources as a strategic supplier to Europe’s largest steel producer, potentially covering ~25 % of EU annual molybdenum consumption and 100 % of EU defence‑related demand.
• The MOU follows prior EU recognition of the Malmbjerg project as a priority critical mineral asset and underscores Canada‑EU cooperation on critical minerals.

Key Details

• Parties: Greenland Resources Inc. (TSX:MOLY, FSE:M0LY) and GMH Gruppe SE & Co. KG (“GMH”).
• Scope of Supply: Long‑term delivery of ferro‑molybdenum, molybdenum‑oxide and briquettes produced from molybdenum ore extracted at the Malmbjerg project and refined in Belgium.
• Strategic Rationale:
• GMH seeks a stable, responsibly sourced molybdenum supply with low Scope 1&2 emissions (electric‑arc furnace steel production).
• EU is the world’s second‑largest molybdenum consumer (~122 M lb/yr) but has no domestic extraction; Germany classifies molybdenum as “Category 3” critical raw material.
• Project Metrics (Malmbjerg):
• Proven & Probable Reserves: 245 Mt at 0.176 % MoS₂ → 571 M lb contained Mo.
• Planned average annual production (years 1‑10): 32.8 M lb Mo (≈25 % of EU total yearly consumption, 100 % of EU defence needs).
• Capex: US$820 M; Levered after‑tax IRR 33.8 %; Payback 2.4 years (based on $18/lb Mo price).
• By‑product: Magnesium – project uses ~35,000 m³/day saline water (~900 ppm Mg) with plans to extract magnesium for additional revenue.
• Regulatory Milestones: Exploitation licence awarded 19 Jun 2025 for molybdenum and magnesium extraction.
• Government Endorsements:
• Hon. Tim Hodgson, Canada’s Minister of Energy & Natural Resources, highlighted the agreement as a concrete outcome of Canada‑Germany critical minerals cooperation.
• The EU’s European Raw Materials Alliance (ERMA) supports the project.
• Potential Market Impact: Ability to supply up to ~25 % of EU molybdenum demand and fully meet EU defence sector requirements for primary molybdenum, enhancing supply security amid geopolitical risks (e.g., Chinese export controls).

Notable Quotes

“This is an example of how our government is working with international partners to create a pathway that secures economic and trade opportunity for Canadian businesses, building a more prosperous, sovereign Canada.” – Hon. Tim Hodgson, Minister of Energy and Natural Resources (Canada)