Greenland Resources announced that it has entered into a Financial Sustainability Agreement with EIT RawMaterials GmbH, a public-private partnership co-funded by the European Union under Horizon Europe. Under this agreement, EIT RawMaterials will provide €500,000 (approximately C$815,000) in funding to support work on magnesium extraction from process saline water at the Company’s Malmbjerg molybdenum project in Greenland. The funding arrangement involves the issuance of shares in accordance with conversion terms detailed in a related put and call structure between the parties.
In addition to this funding, Greenland Resources plans to complete a non-brokered private placement of up to 112,122 common shares for $1.65 per share, which could potentially raise approximately $185,000. This offering remains subject to Cboe approval and is expected to close on or around November 20, 2025. The Company has also submitted applications for additional Horizon Europe-supported funding intended to cover a significant portion of the equity component of the Malmbjerg project’s capital expenditure.
The Malmbjerg project received a 30-year exploitation license for molybdenum and magnesium in June 2025. Magnesium is classified as a critical raw material under the EU Critical Raw Materials Act, and the current European supply is heavily dependent on China. The funding from EIT RawMaterials will be used to conduct testing of magnesium extraction using innovative methods, beginning with core sampling and metallurgical analysis involving existing stored drill core from Greenland.
The investment is structured through the acquisition of securities in Greenland Resources A/S, the Company’s wholly owned Greenlandic subsidiary. These subsidiary securities are convertible into Greenland Resources common shares through put and call options exercisable within six months. The conversion of the initial funds is expected to occur concurrently with the closing of the private placement at a deemed price of $1.65 per share, subject to Cboe approval. Any remaining funds advanced later will be converted at a price based on market trading data, subject to a minimum issue price of $1.65 per share.
The work funded by this investment will involve testing up to €500,000 in eligible costs, with at least €375,000 advanced immediately and the remainder contingent upon project reporting and approval.
The Malmbjerg project is characterized by a large primary molybdenum deposit along with magnesium as a byproduct. The feasibility study completed in 2022 outlines a low-footprint, open-pit operation with modular infrastructure and reduced water usage. The project’s production profile represents a substantial potential supply source for Europe, with the capacity to meet around 25% of the EU’s annual molybdenum consumption and all of its defense-related molybdenum needs. Magnesium extraction from saline water processed on-site is being evaluated for incorporation into the economics of future projects.
This initiative aligns with broader EU objectives aimed at securing domestic sources of critical raw materials, ensuring industrial resilience, and promoting supply chain independence for key sectors, including energy, transportation, and defense.
KEY QUOTES
“Magnesium is mission-critical for Europe’s competitiveness — from lightweight mobility to defence — and yet the EU depends on China for nearly all its supply. This dependence threatens the stability of core industrial sectors such as aluminum, where magnesium is an essential alloying element that underpins our transport, energy and manufacturing value chains. As Europe’s flagship public–private partnership in the raw materials sector, we are backing practical innovations that add new European tonnage with a smaller carbon footprint. Our investment in Greenland Resources is a strategic response to the global race to secure critical raw materials, unlocking value from innovation and accelerating the CRMA goals to diversify supply and strengthen resilience for European industry.”
Bernd Schäfer, CEO and Managing Director, EIT RawMaterials
“The equity investment from EIT RawMaterials, funded by Horizon Europe, will not only allow us to continue our work on magnesium using innovative low carbon technologies but it also sets an important execution precedent for further EU strategic investments and proves that EU public funding can be invested in our Greenlandic subsidiary and swapped to our listed parent company. Our Company has applied for significantly larger amounts from EU programs also funded by Horizon Europe and other EU sovereign states aiming to finance the equity portion of the capex.”
Ruben Shiffman, Executive Chairman, Greenland Resources
