FinnAust Mining has increased its land position in Greenland significantly via the proposed acquisition o Avannaa Exploration, which has several advanced projects in the south-west of the country.
The company has agreed to acquire the entire issued and to be issued share capital of Avannaa from Capricorn Oil, a subsidiary of Cairn Energy.
FinnAust says two of the projects, which have been the subject of more than US$50 million of technical work prior to Capricorn's activities by blue chip mining houses, are of particular interest. These are the 194 sq km Disko-Nuussuaq ('Disko') Magmatic Massive Sulphide ('MMS') nickel-copper-platinum project ('Ni-Cu-PGE') and the 107 sq km Kangerluarsuk SedEx lead-zinc-silver project.
FinnAust chief executive Roderick McIllree said: "This acquisition further consolidates FinnAust's position in Greenland and sees us add quality acreage to our Greenlandic portfolio, which already includes the unusually pure Pituffik Titanium Project.
"Having worked in Greenland extensively over the past 10 years, my team and I have an excellent understanding of the resource opportunity in this emerging jurisdiction, the potential of which grows day by day as a result of environmental changes.
"Two of Avannaa's projects, Disko and Kangerluarsuk appear to have high-tonnage and high-grade base metal potential. These are rare geological characteristics not often seen in the Cu-Ni-PGE & Zn-Pb-Ag mineral spaces. These projects have been of interest for some time, however as with all things, timing was crucial.
"Prior to Capricorn's involvement, major mining houses such as Falconbridge and Vismand spent more than US$50 million on these projects over multiple campaigns spanning more than three decades and therefore FinnAust is now ideally positioned in Greenland with multiple, large, high-grade polymetallic targets that are drill ready as well as what we believe to be a revenue stream in the form of Pituffik.
"There is a long way to go, but the addition of these unique projects further consolidates our dominant position in Greenland's emerging minerals sector.
"In terms of strategy, FinnAust will maintain its immediate focus on advancing Pituffik, which is shaping up to be a globally significant titanium asset.
"Before announcing details of our work programme plan for these new assets, our team will first absorb the large datasets available to ensure that all future work delivers the success we have seen at Pituffik and maximises shareholder value."