Greenland Mines closes acquisition of Sarfartoq rare earth magnet project

Greenland Mines has finalized its acquisition of the Sarfartoq rare earth magnet project from Neo Performance Materials for $35 million. The deal brings the high-potential project into Greenland Mines' mining portfolio. Prior to the acquisition, Greenland Mines released an independent Initial Assessment for Sarfartoq, which revealed positive project economics.

The property boasts an estimated pre-tax net present value (NPV) of around $2.05 billion and a pre-tax internal rate of return (IRR) of 118.6%, based on the Indicated and Inferred Mineral Resources. The Initial Assessment focuses on the ST1 deposit, which makes up less than 1% of the 191-square-kilometer Sarfartoq mineral exploration license.

Five other rare earth occurrences along the outer ring structure remain largely unexplored. The Greenland Mines team considers the project one of the island's most advanced and compelling rare earth projects, highlighting its high-grade nature and Arctic logistics advantages. The property is situated about 60 km from Kangerlussuaq in southeastern Greenland and hosts a carbonatite-hosted deposit exceptionally rich in neodymium-praseodymium, essential for manufacturing high-strength NdFeB permanent magnets.

With over 15 years of exploration work and 23,000 meters of drilling, the Sarfartoq project is backed by a historic NI 43-101 Mineral Resource Estimate and a Preliminary Economic Assessment. Greenland Mines president Dr. Bo Møller Stensgaard stated, "The Sarfartoq acquisition is closed, and one of the Western world’s top-tier upstream rare earth magnet projects is now a Greenland Mines asset."

The company plans to move swiftly into the next phase of Sarfartoq's development, including targeted infill drilling, pilot-scale metallurgical testing, mine engineering planning, and ongoing environmental and social baseline studies to advance the project toward a pre-feasibility study.