Home » Posts tagged 'greenx metals' (Page 3)
Tag Archives: greenx metals
New UK Investor Magazine Podcast – Lloyds #LLOY, Rio Tinto #RIO, GreenX Metals #GRX and Power Metal Resources #POW
We record this Podcast in the midst of earnings season with updates from blue chips companies flooding in from Europe as well as across the pond.
The earnings picture has been mixed, but notably better than investor sentiment would suggest. We discuss upcoming rate hikes from the Fed and market positioning ahead of their decision tonight.
In the current earnings season, US companies have consistently beaten on revenue but there have been misses on profitability.
We focus on Lloyds and Rio Tinto who both provide attractive dividends, but are being impacted in different ways but the current macro environment.
We finish by providing updates on two junior resource companies in Power Metal Resources and GreenX.
Lloyds, Rio Tinto and the European Earnings Season with Alan Green
UK Investor Magazine Podcast – Covering Royal Mail #RMG Poolbeg Pharma #POLB & GreenX Metals #GRX
Alan Green joins the Podcast for an in-depth discussion around the current market conditions and a selection of UK equities.
We break down the current market dynamics and question whether we have seen a bottom in markets as investor sentiment improves.
Royal Mail has changed their name after a torrid period of trading and a rather challenging outlook. Pressures from unions and falling volumes create a potentially toxic cocktail for the company and this has been reflected in the share price.
Poolbeg Pharma have announced a bug step forward in their flagship project in the commencement of a trial for POLB 001, a strain agnostic, small molecule immunomodulator.
GreenX Metals is creating a portfolio of metals with applications in clean technology. Their shares popped higher today as they begin a field program at their copper project in Greenland.
GreenX Metals #GRX – Field Program to Commence at ARC in Greenland
GreenX Metals Limited (GreenX or the Company) is pleased announce the receipt of all the permits for the proposed 2022 field program at the Arctic Rift Copper Project (ARC or ARC Project), which will commence in the coming weeks. Five geological teams will be deployed in the field supported by All-Terrain-Vehicles (ATV). The field team and field equipment will be deployed by ship from Iceland and will access the ARC project via Independence Fjord.
For a full multimedia version of this announcement, click here
Highlights:
|
· |
Field program to commence at ARC in the coming weeks with deployment of five geological field teams supported by customised All-Terrain-Vehicles |
|
· |
Identified “walk-up” native copper and copper sulphide targets to be prioritised through a program of sampling, core drilling and geophysics |
|
· |
ARC is a significant, large-scale project (5,774km2 license area) with historical exploration results and recent analysis indicative of an extensive mineral system with potential to host world-class copper deposits |
|
· |
ARC mineral system is prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation; analogue of the economically significant Keweenaw Peninsula in Michigan, USA |
|
· |
Strong news flow over the upcoming quarters from the field program and results from ongoing analysis of historical data |
Historical programs and latest analysis have identified a number “walk-up” native copper and copper sulphide targets that will be the priority for the upcoming field program including Discovery Zone, Neergaard Dal and the Knuth Fault. The field campaign is based on a program of sampling, mapping, portable core-drilling and geophysics including seismic, electro-magnetic (EM) and radiometrics. Portable XRF will be used in the field and the field team will have access to satellite internet for real time uploading of field results. The field program will be led in the field by Dr Jonathan Bell.
GreenX expects strong news flow over the upcoming quarters from the field program and results from ongoing analysis of historical data.
ARC Project Summary
GreenX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting copper deposits.
The large scale of the mineral system, widespread copper anomalism, combined with multiple mineralising events are analogous to some of the most significant copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.
Historical field programs identified widespread copper-silver occurrences at surface:
· geochemical sampling found that 80% of stream sediment samples contain native copper
· native copper is found in situ or as float, with individual clasts of native copper weighing up to 1 kg+
· high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t Ag over 4.5m true width, are known from trench sampling of fault zones within sediments (see GreenX announcement dated 20 January 2022 entitled “New Copper Targets Identified at ARC”)
· assay results from individual samples are much higher grade, including:
|
o 53.8% Cu and 2,480g/t Ag |
o 7.9% Cu and 53 g/t Ag |
|
o 20.7% Cu and 488g/t Ag |
o 5.3% Cu and 112 g/t Ag |
|
o 12.5% Cu and 385g/t Ag |
o 5.0% Cu and 304 g/t Ag |
|
o 9.0% Cu and 112 g/t Ag |
o 4.0% Cu and 82 g/t Ag |
There are multiple targets and favourable geological settings considered to be prospective within the ARC project area, including the following.
· The highly anomalous basalt is a high priority target that has not previously been the focus of commercial exploration. These basalts are the source of the native copper.
· The sulphide mineralised faults passing through these basalts into the overlying sediments have been subject to first pass exploration and shown to be rich in copper and silver. The high-grade sulphides in these faults will be the focus of further exploration.
· The permeable coarse-grained sandstone within the Jyske Ås Fm has high grade copper that is effectively unexplored. This stratiform mineralisation adds the potential for significant lateral extension of the known mineralisation exposed in the faults of the Discovery Zone.
As such, the extensive ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted (‘sediment-hosted’) mineralisation that despite the attractive grades, is virtually unexplored.
Structural Geology Review
A structural review of the currently available datasets regarding ARC’s geology was recently conducted by specialist consultant Dr Mark Munro (see GreenX announcement dated 20 January 2022 entitled “New Copper Targets Identified at ARC”). It was confirmed that the known copper mineralisation, including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults (Eigil Fault) with associated mineralisation and identifying new reverse faults (Knuth Fault and Neergaard Valley Fault).
This demonstrates known mineralised structures intersecting the Zig-Zag flood basalts, and further strengthens the ARC’s analogy with the prolific and economically significant Keweenaw Peninsula. At this analogy in Michigan, the mineralised reverse faults are the fluid transport conduits for the strata bound native copper deposition in flood basalts, and copper sulphides in the overlying sediments. The Keweenaw Peninsula contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper.
Identified Targets and Prospects
Discovery Zone
The most advanced prospect within ARC is the copper-silver bearing Discovery Zone, located at the northern end of Neergaard Dal. The Discovery Zone was identified in 2010 as a follow up to a geochemical anomaly identified by the government geologists in 1994.
The Discovery Zone is comprised of at least three parallel breccia faults trending northwest-southeast. The faults are traced for a minimum of 2km along strike before they disappear underneath moraine. The Discovery Zone is open in both directions.
The width of the fault breccias is variable, ranging from 1m to 25m thick. The host lithology is red sandstones of the lower Jyske Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The breccias have copper sulphide and copper oxide mineralisation. The copper-bearing species include chalcocite, brochantite, bornite, chalcopyrite, and malachite. The mineralisation is expressed in two main forms, within which there are two sub-forms:
1. Breccia bound. Mineralisation occurs in thin quartz-dominated veining within the fault breccia and contains disseminated copper sulphides. Assays from this material grades up to 53.8% Cu and 2,480g/t Ag.
Within the breccia-bound mineralisation are intensely potassic, unconsolidated materials known as ‘Black Earth’. The multiple but discontinuous 0.7m to 3m horizons have lengths between 2m to 50m. The Black Earth material contains high grades of copper and silver, with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag (Chip Line #7, sampled interval 5.25m, estimated true width 4.5m).
2. Stratiform. Mineralisation occurs immediately adjacent to the faults and comprises lenses and blebs of chalcocite and bornite measuring from mm-scale to 15cm long.
Within the stratiform mineralisation is a poorly consolidated sandstone that is identified as a potentially vast target horizon within the Jyske Ås Fm. The outcrop shows pervasive interstitial chalcocite, bornite and chalcopyrite.
Zig-Zag Formation
Native copper float frequently occurs near the Zig-Zag Fm in the area around the Discovery Zone and Neergaard Valley. Outside of ARC a 1.5m long chip sample returned a significant grade of 1.97% Cu, and a grab sample returned 3.17% Cu from chalcocite filled vesicles. The Company and Greenfields Exploration Limited (GEX) consider the widespread occurrence of low-grade copper mineralisation, the frequent presence of sizeable native copper, and the sampled grades within the licence to be very significant.
Valuable new information about sites of native copper was gained from recently obtained field notebooks from the Government’s reconnaissance field work that was performed in the area in 1979 and 1980 (see GreenX announcement dated 20 January 2022 entitled “New Copper Targets Identified at ARC”). The field work identified numerous examples of native copper in association with the basalt rocks in Neergaard Valley, the main north-south oriented feature of the Minik Anomaly.
What is particularly striking is that in the centre of this anomaly there is a historical description of native copper occurring in both breccias (fissures) and gas-cavities occurring near one another. At the Keweenaw Peninsula, native copper specimens weighing over 500 tonnes were mined from fissures and underpinned the original ‘gold’-rush. However, it was the copper found in gas-cavities within the flood basalts that underpinned much of the 99-year mining history of the district. The historical description of fissure copper next to cavity-hosted copper within ARC adds support to the Keweenaw analogy as well as evidence of a vigorous (favourable), breccia inducing mineralisation event. The JV partners will investigate this site as a matter of priority during the 2022 field program.
ARC – Geological Analogues
In terms of exploration targeting at ARC, the known mineralisation is ascribed to two distinct deposit types:
o Sediment-hosted stratiform copper – within this family of deposit types, ARC is analogous to the super-giant Katangan Basin (‘Copperbelt’), the Zechstein (‘European Kupferschiefer’) and the White Pine-Presque Isle (‘White Pine’) deposit models. Such deposit models account for a large proportion of the world’s highest quality mineral deposits due to their potential favourable size and grade combinations.
o Basaltic native copper – which is a comparatively poorly understood deposit type. Such deposits occur around the world however, documentation of the American and Canadian deposits is most readily available (e.g., Keweenaw, Michigan; Kennecott, Alaska; Sustut, British Columbia). Of the historical native copper districts, the Keweenaw Peninsula dominates the literature and production statistics are available. The Keweenaw Peninsula had a pre-mining endowment of 8.9Mt of native copper, of which 6.5Mt was mined for ~100 years from the 1840’s. Most of the commercial production of native copper was from stratiform deposits, which facilitated high production rates and early introduction of mechanisation. Notably, mining from ‘fissures’ produced masses of native copper weighing hundreds of tonnes.
The closest geological analogue to ARC based on present understanding is the Keweenaw Peninsula which had a known pre-mining copper endowment including both native and sulphidic copper of over 16Mt and was a prolific mining district as noted above. Whilst the Keweenaw Peninsula is notable for its native copper, the sulphidic sediment-hosted mineralisation is also significant. The endowment of the copper sulphide mineralisation contained in two well-known deposits is around 4.5Mt Cu. The copper sulphide deposits also contain substantial amounts of silver, with the White Pine deposit having yielded 50Moz of silver, as part of the 2.0Mt of copper that was mined with average grades of 1% Cu and 12g/t Ag. The White Pine mine was in production between 1953 and 1996. The other known deposit is the Copperwood copper sulphide deposit which is subject to current economic evaluation.
In addition to copper mining, the Michigan mineral province also contains a high-grade magmatic nickel-copper sulphide-bearing deposit, Eagle Mine, discovered by Rio Tinto and now operated by Lundin Mining. Commercial production commenced from Eagle Mine in 2014. The mine is expected to produce 163Kt of nickel, 134Kt of copper and accessory platinum, palladium, and cobalt over its estimated nine-year mine life.
About The Arctic Rift Copper Project
ARC is an exploration joint venture between GreenX and GEX. GreenX can earn 80% of ARC by spending A$10 M by October 2026. The ARC Project is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province. This province is thought to be analogous to the Keweenaw Peninsula of Michigan, USA, which contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper. Like Keweenaw, ARC is known to contain at surface, high-grade copper sulphides, ‘fissure’ native copper, and native copper contained in what were formerly gas bubbles and layers between lava flows.
-ENDS-
Competent Persons Statement
The information in this announcement that relates to the Exploration Results is extracted from the announcements dated 6 October 2021 and 20 January 2022. The announcements are available to view on the Company’s website atwww.greenxmetals.com. GreenX confirms that a) it is not aware of any new information or data that materially affects the information included in the announcements; b) all material assumptions included in the announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcements.
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on GreenX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
To view this announcement in full, including all illustrations and figures, please refer to www.greenxmetals.com.
1 Munro, Mark (2021). “Structural Review of the Arctic Rift Copper Project, Greenland”, Munro Geoscience Pty Ltd
GreenX Metals #GRX – Issue of Shares
GreenX Metals Limited (GreenX or Company) advises that is has closed the shortfall for the previously announced entitlements issue by issuing 17,769,000 ordinary fully paid shares at an issue price of A$0.20 / £0.11.
An application will be made for admission of the 17,769,000 shares to the standard listing segment of the Official List of the FCA (Official List) and to trading on the main market of the London Stock Exchange for listed securities (LSE Admission). LSE Admission is expected to take place at on 11 February 2022.
Following LSE Admission, the Company’s issued ordinary share capital will be 253,620,464 ordinary shares. The above figure of 253,620,464 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company following LSE Admission.
GreenX Metals #GRX – Quarterly Activities Report December 2021
GreenX Metals #GRX Quarterly Activities Report December 2021
HIGHLIGHTS
· Earn-in Agreement signed to acquire up to 80% in Arctic Rift Copper Project in Greenland (ARC).
o Large-scale project with historical exploration results indicative of an extensive mineral system with potential to host world-class copper deposits.
o ARC known to be prospective for basalt, fault and sedimentary rock-hosted copper mineralisation but remains virtually unexplored.
o Historical field programs identified widespread copper-silver occurrences at surface.
o Minik Anomaly in north-eastern part of ARC hosts highest copper grades coincident with multiple geophysical anomalies.
· Subsequent to December quarter, new copper targets have been identified at ARC from ongoing geological analysis.
o Latest analysis identifies new “walk-up” native copper and copper sulphide targets for upcoming field program.
o New priority, walk-up, at-surface target identified along the Knuth Fault which is a Discovery Zone “lookalike” feature.
o Two additional exposures of native copper mineralisation identified from recently unearthed historical documentation at Neergaard Dal.
· Entitlements Issue to fund new and current activities announced concurrently with ARC earn-in. Following interest from investors in the UK and Europe, GreenX has secured Entitlement and shortfall commitments for gross proceeds of A$4.5 million with the shortfall shares to issued shortly.
· Company name changed to GreenX Metals Limited to reflect its vision to power the global energy transformation through copper exploration.
· International arbitration claims against the Republic of Poland under both the Energy Charter Treaty and the Australia-Poland Bilateral Investment Treaty continue at pace.
· Cash balance as at 31 December 2021 is A$4 million with a further $3.6 million secured from the Entitlements shortfall.
GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company) is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 December 2021.
ARC EARN-IN AGREEMENT AND PROJECT SUMMARY
During the quarter, GreenX entered into an Earn-in Agreement (EIA) with Greenfields Exploration Limited (GEX) to acquire an interest of up to 80% in the Arctic Rift Copper project (ARC or Project) in Greenland.
ARC is an exploration joint venture between GreenX and GEX. GreenX can earn 80% of ARC by spending A$10 million by October 2026. ARC is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.
This province is thought to be analogous to the Keweenaw Peninsula of Michigan, USA, which contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper. Like Keweenaw, ARC is known to contain at surface, high-grade copper sulphides, ‘fissure’ native copper, and native copper contained in what were formerly gas bubbles and layers between lava flows.
GreenX and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits.
The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.
Minik Anomaly
Very high-grade copper mineralisation identified at ARC is associated with the Minik Anomaly, a coincident magnetic-electromagnetic-gravity feature in an area where there is a change in oxidation state and widespread native copper in stream sediments. These features are presented as the footprint of a large-scale hydrothermal system. The frequency and size of the native copper clasts, and the high grade of the copper-silver sulphides that are exposed at the surface, bode well for the probability of discovery.
Discovery Zone
The most advanced prospect within ARC is the copper-silver bearing Discovery Zone, located at the northern end of Neergaard Dal. The Discovery Zone was identified in 2010 as a follow up to a geochemical anomaly identified by the GGS in 1994.
The Discovery Zone is comprised of at least three parallel breccia faults trending northwest-southeast, with the furthest faults being around 2km apart. The faults are traced for a minimum of 2km along strike before they disappear underneath moraine. The Discovery Zone is open in both directions.
STRUCTURAL GEOLOGY REVIEW
In January 2022, GreenX announced that new copper targets had been identified at ARC following ongoing geological analysis. Latest analysis identifies new “walk-up” native copper and copper sulphide targets for the upcoming field program. A new priority, walk-up, at-surface target was identified along the Knuth Fault which is a Discovery Zone “lookalike” feature. Further, two additional exposures of native copper mineralisation were identified from recently unearthed historical documentation at Neergaard Dal.
A structural review of the currently available datasets of ARC’s geology was conducted by specialist consultant Dr Mark Munro1 and confirmed that the known copper mineralisation including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are considered to be an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults with associated mineralisation and identifying new reverse faults.
The review reinforces evidence of a large-scale mineral system and regional fertility related to identified faults and therefore exploration targeting, and efficiency of upcoming field programs can be greatly improved through enhanced geological understanding of ARC.
During the quarter, the ARC JV appointed Dr Mark Munro as head geologist. Dr Munro holds a PhD in Structural and Metamorphic Geology from James Cook University. As a three-year post-doctoral researcher at the University of Western Australia he studied the mineralisation, alteration, and structure of deposits. In addition to his considerable field and structural knowledge, he is a 3D modeler and has global experience with precious and base metal projects. Following a position as a mapper with the Geological Survey of Western Australia, Dr Munro has spent four years working as an applied structural geologist for industry. He engages in the structural logging of drill core, in addition to both surface and underground mapping, with view to understanding the multi-scale aspects of deposit generation.
REGIONAL DEVELOPMENTS
During early December 2021, Ironbark Zinc (ASX:IBG) announced that it secured a Preliminary Project Letter approval for a US$657m loan from the US Government’s EXIM Bank for the development of Ironbark’s Citronen lead-zinc project. The Citronen project is located approximately 150 km further north than ARC. The loan, if approved, will mean that the United States is financing most of the cost of developing the strategically important Citronen project. This project will include the construction of an airstrip and port at Citronen, which may provide infrastructure support for a future development at ARC.
Greenland has been increasingly recognised as one of the last great mineral frontiers, with interest from leading miners and commodities houses including Anglo American, Glencore, Trafigura, and IGO. More recently, major foreign governments have also stepped in to support and finance mineral development projects. The Australian Financial Review reported that Greenland ‘has found itself in the middle of a geopolitical great game’, with the funding for Citronen ‘[surfing] a wave of geopolitical project funding’ in the Arctic region. The United States and the European Union are now all making concrete moves to finance mineral projects in Greenland.
CORPORATE
Name Change
During the quarter the Company name changed to GreenX Metals Limited to reflect its vision to power the global energy transformation through copper exploration.
Entitlements Issue & Shortfall Offer
Concurrent with the ARC EIA, the Company announced undertaking a one (1) for ten (10) pro rata non-renounceable Entitlements Issue at $0.20 (£0.11/€0.13) per share. Eligible shareholders were entitled to acquire one (1) New Share for ten (10) ordinary shares under the Entitlements Issue.
Following significant interest from potential new investors in the UK and Europe, the Company offered a total of 17,775,000 shortfall shares from the Entitlements Issue to nominated parties.
The Company has secured commitments from the Entitlements Issue and shortfall for total gross proceeds of A$4.5m, with the shortfall shares to be issued shortly.
Cash Balance
As at 31 December 2021, GreenX had A$4 million cash available with a further $3.6 million secured from the Entitlements shortfall.
Board Changes
During the quarter, Ms Carmel Daniele, founder and Chief Executive Officer of CD Capital, stepped down as CD Capital’s nominee to the GreenX Board as a non-executive Director and was replaced by Mr Garry Hemming, a highly experienced exploration geologist, effective immediately. Mr Hemming is a senior resource geologist at CD Capital and brings over 40 years’ experience in exploration and as a mining executive of public companies.
DISPUTE WITH POLISH GOVERNMENT
The Company’s international arbitration claims (Claim) against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with GreenX and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) rules to the proceedings.
Both the Australia-Poland Bilateral Investment Treaty (BIT) and Energy Charter Treaty (ECT) claim Tribunals have been constituted, with both Claim’s being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a Claim for compensation against Poland with the Tribunal in the amount of £806 million (A$1.5 billion / PLN 4.2 billion), which includes an assessment of the value of GreenX’s lost profits and damages related to both the Jan Karski mine and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by GreenX specifically for the purposes of the Claim.
In July 2020, the Company announced it had executed a Litigation Funding Agreement for US$12.3 million with Litigation Capital Management. The facility is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.
In September 2020, GreenX announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland.
GreenX’s dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company’s Jan Karski and Debiensko mines in Poland which effectively deprives GreenX of the entire value of its investments in Poland.
In February 2019, GreenX formally notified the Polish Government that there exists an investment dispute between GreenX and the Polish Government. GreenX’s notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated GreenX’s right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably. The Company remains open to resolving the dispute with the Polish Government amicably. However, as of the date of this report, no amicable resolution of the dispute has occurred, since the Polish Government has declined to participate in discussions related to the dispute and accordingly the Company has formerly submitted its Claim as discussed above.
GreenX’s investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being brought against Poland in the natural resources and energy sectors with damages claims ranging from US$120 million to over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina Copper (Copper) and InvEnergy (wind farms).
Forward Looking Statements
This release may include forward-looking statements. These forward-looking statements are based on GreenX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
Competent Persons Statement
The information in this announcement that relates to Exploration Results for ARC is extracted from the ASX announcements dated 6 October 2021 and 22 January 2022. Which are available to view at www.greenxmetals.com.
GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcements; (b) all material assumptions and technical parameters underpinning the content in the relevant announcements continue to apply and have not materially changed; and (c) the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcements.
To view this announcement in full including all figures and illustrations, please refer to www.greenxmetals.com
1 Munro, Mark (2021). “Structural Review of the Arctic Rift Copper Project, Greenland”, Munro Geoscience Pty Ltd
APPENDIX 1: TENEMENT INFORMATION
As at 31 December 2021, the Company has an interest in the following tenements:
|
Location |
Tenement |
Percentage |
Status |
Tenement Type |
|
Greenland |
Arctic Rift Copper Project (Licence No. 2021-07 MEL-S) |
–1 |
Granted |
Exploration Licence |
|
Jan Karski, Poland |
Jan Karski Mine Plan Area (K-4-5, K6-7, K-8 and K-9)2 |
100 |
In dispute2 |
Exclusive Right to apply for a mining concession |
|
Debiensko, Poland |
Debiensko 1 |
100 |
Granted2 |
Mining |
|
Debiensko, Poland |
Kaczyce 1 |
100 |
Granted |
Mining & Exploration (includes gas rights) |
Notes:
1 During the quarter, the Company announced that it had entered into the EIA with GEX to acquire an interest of up to 80% in ARC. As at the date of this announcement, the Company held no beneficial interest in ARC, other than through the EIA.
2 GreenX was commenced international arbitration claims against the Republic of Poland under both the ECT and the BIT. GreenX alleges that the Republic of Poland has breached its obligations under the Treaties through its actions to block the development of the Company’s Jan Karski mine and Debiensko mines in Poland.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 31 December 2021, the Company made payments of $172,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of ($132,000) and the provision of a serviced office and company secretarial and administration services ($40,000).
APPENDIX 3: EXPLORATION AND MINING EXPENDITURE
During the quarter ended 31 December 2021, the Company made the following payments in relation to exploration activities:
|
Activity |
$000 |
|
Greenland (ARC) |
|
|
Project Management |
98 |
|
Geochem |
139 |
|
Other (field supplies, fuel, satellite imagery, etc) |
148 |
|
Greenland Sub-total |
385 |
|
Poland |
|
|
Legal and permitting related expenditure |
90 |
|
Consultants – technical and Debiensko statutory operations personnel |
93 |
|
Other |
47 |
|
Poland Sub-total |
230 |
|
Total as reported in the Appendix 5B |
615 |
There were no mining or production activities and expenses incurred during the quarter ended 31 December 2021.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
|
Name of entity |
||
|
GreenX Metals Limited |
||
|
ABN |
|
Quarter ended (“current quarter”) |
|
23 008 677 852 |
31 December 2021 |
|
|
Consolidated statement of cash flows |
Current quarter |
Year to date |
|
|
1. |
Cash flows from operating activities |
– |
– |
|
1.1 |
Receipts from customers |
||
|
1.2 |
Payments for |
(230)* |
(524)* |
|
(a) exploration & evaluation |
|||
|
(b) development |
– |
– |
|
|
(c) production |
– |
– |
|
|
(d) staff costs |
(175) |
(342) |
|
|
(e) administration and corporate costs |
(289) |
(603) |
|
|
1.3 |
Dividends received (see note 3) |
– |
– |
|
1.4 |
Interest received |
5 |
10 |
|
1.5 |
Interest and other costs of finance paid |
– |
– |
|
1.6 |
Income taxes paid |
– |
– |
|
1.7 |
Government grants and tax incentives |
– |
– |
|
1.8 |
Other (provide details if material) (a) Business Development (b) Property rental and gas sales (c) Arbitration related expenses (d) Receipt of arbitration funding |
(89) 44 (247) 240 |
(109) 92 (740) 938 |
|
1.9 |
Net cash from / (used in) operating activities |
(741) |
(1,278) |
|
*includes legal and permitting expenditure and payments made to consultants (Debiensko technical statutory operations personnel). |
|||
|
2. |
Cash flows from investing activities |
– |
– |
|
2.1 |
Payments to acquire or for: |
||
|
(a) Entities |
|||
|
(b) Tenements |
– |
(30) |
|
|
(c) property, plant and equipment |
(247) |
(249) |
|
|
(d) exploration & evaluation |
(385) |
(385) |
|
|
(e) investments |
– |
– |
|
|
(f) other non-current assets |
– |
– |
|
|
2.2 |
Proceeds from the disposal of: |
– |
– |
|
(a) entities |
|||
|
(b) tenements |
– |
– |
|
|
(c) property, plant and equipment |
229 |
260 |
|
|
(d) investments |
– |
– |
|
|
(e) other non-current assets |
– |
– |
|
|
2.3 |
Cash flows from loans to other entities |
– |
– |
|
2.4 |
Dividends received (see note 3) |
– |
– |
|
2.5 |
Other (provide details if material) |
– |
– |
|
2.6 |
Net cash from / (used in) investing activities |
(403) |
(404) |
|
3. |
Cash flows from financing activities |
901 |
901 |
|
3.1 |
Proceeds from issues of equity securities (excluding convertible debt securities) |
||
|
3.2 |
Proceeds from issue of convertible debt securities |
– |
– |
|
3.3 |
Proceeds from exercise of options |
– |
– |
|
3.4 |
Transaction costs related to issues of equity securities or convertible debt securities |
(23) |
(23) |
|
3.5 |
Proceeds from borrowings |
– |
– |
|
3.6 |
Repayment of borrowings |
– |
– |
|
3.7 |
Transaction costs related to loans and borrowings |
– |
– |
|
3.8 |
Dividends paid |
– |
– |
|
3.9 |
Other (provide details if material) |
– |
– |
|
3.10 |
Net cash from / (used in) financing activities |
878 |
878 |
|
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
||
|
4.1 |
Cash and cash equivalents at beginning of period |
4,224 |
4,762 |
|
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(741) |
(1,278) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(403) |
(404) |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
878 |
878 |
|
4.5 |
Effect of movement in exchange rates on cash held |
2 |
2 |
|
4.6 |
Cash and cash equivalents at end of period |
3,960 |
3,960 |
|
5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
|
5.1 |
Bank balances |
3,960 |
4,224 |
|
5.2 |
Call deposits |
– |
– |
|
5.3 |
Bank overdrafts |
– |
– |
|
5.4 |
Other (provide details) |
– |
– |
|
5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
3,960 |
4,224 |
|
6. |
Payments to related parties of the entity and their associates |
Current quarter |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
(173) |
|
6.2 |
Aggregate amount of payments to related parties and their associates included in item 2 |
– |
|
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
||
| 7. |
Financing facilities Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end |
|
|
7.1 |
Loan facilities |
17,000* |
6,085 |
|
7.2 |
Credit standby arrangements |
– |
– |
|
7.3 |
Other (please specify) |
– |
– |
|
7.4 |
Total financing facilities |
17,000* |
6,085 |
|
7.5 |
Unused financing facilities available at quarter end |
10,915 |
|
|
7.6 |
Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. |
||
|
On 30 June 2020, the Company executed a Litigation Funding Agreement (LFA) for US$12.3 million (*now worth A$17 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited (LCM), to pursue damages claims in relation to the investment dispute between GreenX and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Energy Charter Treaty and the Australia – Poland Bilateral Investment Treaty (BIT). LCM will provide up to US$12.3million (~A$17 million), denominated in US$, in limited recourse financing which is repayable to LCM in the event of a successful Claim or settlement of the Dispute that results in the recovery of any monies. If there is no settlement or award, then LCM is not entitled to any repayment of the financing facility. In return for providing the financing facility, LCM shall be entitled to receive repayment of any funds drawn plus an amount equal to between two and five times the total of any funds drawn from the funding facility during the first five years, depending on the time frame over which funds have remained drawn, and then a 30% interest rate after the fifth year until receipt of damages payments. |
|||
|
8. |
Estimated cash available for future operating activities |
$A’000 |
|
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(741) |
|
8.2 |
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) |
(385) |
|
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(1,126) |
|
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
3,960 |
|
8.5 |
Unused finance facilities available at quarter end (item 7.5) |
10,915 |
|
8.6 |
Total available funding (item 8.4 + item 8.5) |
14,875 |
|
8.7 |
Estimated quarters of funding available (item 8.6 divided by item 8.3) |
>10 |
|
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. |
||
|
8.8 |
If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
|
|
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? |
||
|
Answer: Not applicable |
||
|
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? |
||
|
Answer: Not applicable |
||
|
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? |
||
|
Answer: Not applicable |
||
|
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
||
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 28 January 2022
Authorised by: Company Secretary
(Name of body or officer authorising release – see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.