Under a deal announced this morning, Mount Ridley Mines (ASX: MRD) will acquire 100% of Longland Resources, which owns the Ryberg nickel, copper, cobalt, palladium and gold project in east Greenland.
Longland wholly-owns Ryberg, which comprises 3,889 square kilometres in licences and 50km of strike prospective for copper, nickel, cobalt, palladium and gold.
Surface sampling of the magmatic sulphide mineralisation has uncovered up to 0.8% nickel, 2.2% copper, 0.1% cobalt, 3.3 grams per tonne palladium and 0.15g/t gold.
Under the acquisition, Mount Ridley will issue 19 ordinary securities for every one Longland share held.
This amounts to 1.76 million shares at $0.003 each. A further 300 million in performance shares will also be issued upon meeting particular milestones, with the issue price to be based on the 30 day volume weighted average price preceding the announcement.
Additionally, 300 million in Mount Ridley shares will be issued as success and introduction fees to RM Corporate Finance and Matthew Black.
As part of the agreement, Longland’s founder Thomas Abraham-James will step up as Mount Ridley’s new managing director.
Subject to regulatory and shareholder approvals, the acquisition is scheduled to be completed by mid-March.
“The board of Mount Ridley considers that the proposed acquisition of Longland represents a rare opportunity to engage in a potentially significant nickel-copper-cobalt-palladium-gold magmatic sulphide play in Greenland,” Mount Ridley chairman Peter Christie said.
“With a dominant land position, prospective lithologies, numerous nickel, copper, cobalt, palladium and gold anomalies and near-surface electromagnetic conductors, 2020 is shaping up to be a truly transformational year for the company,” he added.
According to Mount Ridley, Ryberg is on Greenland’s east coast and is accessible from Iceland, which is 430km away.
Although uninhabited, the project has an airstrip and deep water fjord, with current access options via fixed-wing aircraft from Iceland, ship or helicopter from Greenland or Iceland.
Since acquiring the project in 2017, Longland undertook a heli-borne versatile domain electromagnetic and magnetic surveys over the project.
The surveys revealed three conductive targets which may represent massive sulphide at depth.
By late morning trade, Mount Ridley’s shares were down 33% to $0.002.