Greenland Resources Secures Finnvera Financing for Malmbjerg Molybdenum Project
Tuesday, Oct 1, 2024 9:50 am ET
1min read Greenland Resources, a leading mining company, has received Letters of Intent (LoIs) from Finnvera, the Finnish export credit agency, to finance the capital expenditure (Capex) of its Malmbjerg Molybdenum Project. This significant development will enable Greenland Resources to move forward with its plans to extract and process molybdenum, a critical mineral essential for green energy technologies.
The total financing amount proposed by Finnvera in the LoIs is €150 million. This funding will be provided over a period of eight years, with repayment terms structured to align with the project's cash flows. The interest rates and other financial terms associated with the LoIs are subject to final negotiations between Greenland Resources and Finnvera.
Greenland Resources must meet certain conditions related to environmental and social responsibility to secure the financing. These conditions include implementing best practices in mining and processing, minimizing environmental impact, and contributing to the local economy and community.
The Finnvera financing impacts the project's Capex budget and timeline by providing a substantial portion of the required funds. This enables Greenland Resources to accelerate the development of the Malmbjerg Molybdenum Project, bringing it closer to production. The financing also supports Greenland Resources' efforts to reduce unemployment and generate taxes in Greenland by creating jobs and contributing to the local economy.
This financing aligns with the EU's Green Deal and Europe's need for clean molybdenum supplies. The Malmbjerg Molybdenum Project can significantly reduce Europe's dependence on imported molybdenum, supporting the EU's efforts to achieve a low-carbon and climate-resilient future.
The processing technology used in the Malmbjerg Molybdenum Project ensures minimal environmental impact. The process produces nearly no deleterious elements into the water, environment, and tailings. This financing supports Greenland Resources' commitment to sustainable mining practices, further enhancing the project's environmental credentials.
The total financing amount proposed by Finnvera in the LoIs is €150 million. This funding will be provided over a period of eight years, with repayment terms structured to align with the project's cash flows. The interest rates and other financial terms associated with the LoIs are subject to final negotiations between Greenland Resources and Finnvera.
Greenland Resources must meet certain conditions related to environmental and social responsibility to secure the financing. These conditions include implementing best practices in mining and processing, minimizing environmental impact, and contributing to the local economy and community.
The Finnvera financing impacts the project's Capex budget and timeline by providing a substantial portion of the required funds. This enables Greenland Resources to accelerate the development of the Malmbjerg Molybdenum Project, bringing it closer to production. The financing also supports Greenland Resources' efforts to reduce unemployment and generate taxes in Greenland by creating jobs and contributing to the local economy.
This financing aligns with the EU's Green Deal and Europe's need for clean molybdenum supplies. The Malmbjerg Molybdenum Project can significantly reduce Europe's dependence on imported molybdenum, supporting the EU's efforts to achieve a low-carbon and climate-resilient future.
The processing technology used in the Malmbjerg Molybdenum Project ensures minimal environmental impact. The process produces nearly no deleterious elements into the water, environment, and tailings. This financing supports Greenland Resources' commitment to sustainable mining practices, further enhancing the project's environmental credentials.