PERTH (miningweekly.com) – Junior Eclipse Metals has struck an agreement to acquire the Ivittuut cryolite project, in Greenland, along with its associated mining information.
The Ivittuut project is the world’s largest and only cryolite mine, and produced some 3.8-million tonnes of cryolite before closing in 1987, after 120 years of production.
Under the terms of the agreement, Eclipse would pay an initial A$50 000 in cash and would issue 200-million shares to the vendors, along with 12-million shares to third parties on the initial completion of the transaction.
Following shareholder and regulatory approvals, Eclipse would pay a further A$100 000 in cash and would issue a further 81-million shares to the vendors and 73-million shares to third parties, along with 50-million options to the vendors and 12.5-million options to third parties, at an exercise price of 1.5c each and a three-year term.
A further 20-million options will also be issued to the vendors, along with 12.5-million options to third parties, which are exercisable at 5c each with a five-year term.
Eclipse executive chairperson Carl Popal on Thursday said that the transformational acquisition offered multi-facet potential for Eclipse.
“Ivittuut is unique in so many ways, not only as the world’s only cryolite mine with huge potential for multi-commodity deposits next to a historical port, but also as a source of highly sought after heavy rare earth minerals. This is a global leap forward for the company to expand its interest with unique opportunities in the green energy metals and minerals sector.
“Eclipse is now well positioned not only to deliver increasing value for our shareholders by being able to achieve cost effective results from assay of the 19 000 m of drill core presently in storage, but also delineating short-term opportunities in the highly sought after rare earths sector.”