Perth-based minerals explorer Conico (CNJ) is set to procure promising precious and base metal projects in Greenland through the acquisition of Longland Resources, the company said in a statement.
Longland, a company which is registered in England, owns a key 4,500 square kilometre asset which is thought to have gold, copper, nickel, cobalt and palladium reserves. The Ryberg project in particular is located on Greenland's east coast, the country's closest point to Iceland, at a distance of around 430 kilometres from its northwest tip. The area is mostly underexplored and promises large-scale discoveries.
The Ryberg Project includes two principal areas of interest, the Sortekap gold prospect, and the Miki Fjord and Togeda magmatic sulphide prospects, and boasts sea access via a deepwater fjord and an airstrip. Sortekap has only recently been uncovered due to retreating ice and may host promising discoveries. The Miki Fjord and Togeda prospects feature copper, nickel, cobalt, gold and platinum group elements hosted in magmatic sulphides.
The Australian company Conico is planning to acquire 100 percent of issued capital in Longland in exchange for 120 million Conico shares at an issue price of 1.5 cents per share. As part of the deal, Longland founder and director Thomas Abraham-James will become the joint-CEO of Conico.
Upon acquisition of Longland, Conico plans to conduct further surveys and drilling to gain a broader picture of events. However, before that becomes reality, the deal must gain approval from the relevant authorities in Australia, the UK and Greenland, as well as Conico shareholders.
Vast and sparsely-populated Greenland, an autonomous part of the Danish Realm, has proven to harbour previously unexplored regions of rich mineralisation, including precious, base and rare earth metals.
Conico Limited is based in Perth, Western Australia, and is currently involved in the development of the Mt Thirsty cobalt-nickel oxide deposit, which has the potential to be a significant producer of cobalt along with nickel and a major supplier of cobalt to the burgeoning battery supply chain. Following the announcement of its Greenland plans, Conico's shares jumped 20 percent.