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Greenland Minerals (ASX:GGG) Reveals Share Purchase Plan Offer Following Successful Placement

  • December 01, 2020 03:09 PM AEDT
  • Kunal Sawhney
    CEO Kunal Sawhney
    2235 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Greenland Minerals (ASX:GGG) Reveals Share Purchase Plan Offer Following Successful Placement

Summary

  • Australian explorer Greenland Minerals Limited (ASX:GGG) has announced an offer to eligible shareholders to participate in a Share Purchase Plan.
  • Eligible shareholders have the opportunity to purchase up to $30,000 of GGG ordinary shares at 24 cents each without incurring brokerage or transaction costs.
  • The Offer follows on from a $30 million placement that the Company is undertaking.
  • The SPP and Placement funds will support Greenland Mineral’s world-class Kvanefjeld Rare Earth Project in Greenland.
Gold MTF non-AMP

Greenland Minerals Limited (ASX:GGG) has made a non-underwritten Share Purchase Plan (SPP) offer to the existing eligible shareholders. The SPP provides the shareholders with an opportunity to apply for up to $30,000 worth of shares at the same issue as the Company’s recent Placement, being $0.24 per share.

The SPP offer follows a placement by which Greenland Minerals will raise $30 million before costs. The Placement comprises issue of 125,000,000 Shares at $0.24, to be offered to professional, sophisticated as well as other investors.

Notably, Greenland Minerals is providing an opportunity to eligible shareholders to participate in the SPP on the same terms as the Placement.

Decoding GGG’s SPP Plan

Participation in the SPP is available exclusively to shareholders who are registered as holders of Shares at 5pm (Perth time) on the Record Date of 24 November 2020. Besides, the registered address should be in Australia or New Zealand. Greenland Minerals further notified that participation in the SPP is voluntary.

Eligible Shareholders, the Company stated, may take part in the SPP by buying 1 of any 6 (fixed) amount parcels of New Shares. These are in the range of $1,000 and $30,000. The Issue Price of each share is 24 cents.

The Issue Price represents a 19% discount to the volume weighted average price of GGG Shares over the last 5 days on which sales in the Shares are recorded before the day on which the Plan was announced on 25 November 2020. Besides, there is no offer of options as part of the offer.

In case of a scale-back, Eligible Shareholders may receive less than the parcel of New Shares for which they applied. Besides, there will be a shortfall if less than 12,500,000 New Shares are subscribed for by Eligible Shareholders

The Company further notified that Eligible Shareholders who hold Shares as a custodian for one or more persons on the Record Date may apply for up to a maximum amount of $30,000 worth of New Shares in respect of each beneficiary (who is a resident in Australia or New Zealand), subject to providing a Custodian Certificate to Greenland Minerals.

READ ABOUT GREENLAND MINERALS’ Q3 2020 REPORT HERE.

Use of Funds

The funds raised under the SPP and the recent Placement are likely to be used to fund the developments around the world-class Kvanefjeld Rare Earth Project. Besides, the funds may support the Company’s working capital as well as pay the costs of the offer.

Managing Director Dr John Mair recently stated that the strong level of investor support is testament to the growing profile of Kvanefjeld, affirming Greenland Minerals’ development strategy.

He further believes that the recent capital raising comes on the back of significant permitting milestones. It may enable the Company to fast-track all the pre-development work programs at a pivotal time when the demand for rare earths is set to surge, creating an optimal development window.

Greenland Minerals (ASX:GGG) shares traded at $0.247 on 1 Dec 2020.

 

 


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