Greenland Resources announced that the Government of Canada has signed an agreement for a $7 million non-repayable contribution through Natural Resources Canada’s Critical Minerals Research, Development and Demonstration program.
The approval follows Greenland Resources’ March 2, 2026 announcement regarding conditional approval for the contribution.
The company said the Government of Canada has now completed its final due diligence and signed the agreement.
Greenland Resources said Canada is now the first G7 government to invest in mining in Greenland.
The funding will support a metallurgical program connected to the company’s Malmbjerg project in central east Greenland.
The program will evaluate the feasibility of processing primary molybdenum using saline and fresh water for flotation with Canadian expertise.
It will also assess the potential recovery of magnesium and rare earth elements as by-products contained within the Malmbjerg ore body and saline water.
The program is expected to run until March 2028, with progress updates to be provided over time.
Greenland Resources expressed gratitude to the Government of Canada, Minister Tim Hodgson, and his team for their leadership and support.
Greenland Resources is a Canadian and Greenlandic public company focused on developing its wholly owned Climax-type primary molybdenum deposit in central east Greenland.
The Malmbjerg project also includes magnesium as a potential by-product. The company noted that the magnesium market is dominated by China.
Malmbjerg is planned as an open-pit operation with a mine design focused on reduced water usage, low aquatic disturbance, and a smaller footprint through modularized infrastructure.
The project benefits from an NI 43-101 definitive feasibility study completed by Tetra Tech in 2022. The study outlined $820 million in capital expenditures, a levered after-tax internal rate of return of 33.8%, and a payback period of 2.4 years using a molybdenum price of $18 per pound.
The project’s proven and probable reserves are 245 million tonnes at 0.176% MoS2, representing 571 million pounds of contained molybdenum metal.
Greenland Resources said average annual production for years one to ten is expected to be 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2.
The company said that amount represents approximately 25% of total yearly European Union consumption and 100% of EU defense needs.
Greenland Resources is also working on extracting magnesium from saline water used in the project, along with evaluating magnesium and rare earth elements found in molybdenum concentrate.
The company aims to incorporate magnesium and rare earth elements into the economics of the feasibility study.
On June 19, 2025, Greenland Resources was awarded an exploitation license for molybdenum and magnesium.
In December 2025, the European Commission presented RESourceEU and mentioned the Malmbjerg project in Greenland as a priority EU project. The project is also supported by the European Raw Materials Alliance.
