Greenland Mines Closes Sarfartoq Rare Earths Acquisition, Advances Project Toward Pre-Feasibility

Greenland Mines Ltd. (NASDAQ: GRML) announced the closing of its acquisition of the Sarfartoq Nd-Pr Rare Earths Project in southwest Greenland, a move that solidifies the company's position in the rare earth supply chain outside China. The transaction, valued at $20 million in cash and $15 million in securities, was completed on Sept. 1, 2026, according to a press release. The Sarfartoq project is designed to produce neodymium-praseodymium (NdPr) oxide, a critical component in permanent magnets used in electric vehicles, wind turbines, and other clean energy technologies.

The company highlighted that Sarfartoq's planned annual NdPr oxide production would represent approximately 34% of all NdPr oxide refined outside China at 2025 consumption levels during each of the project's nine scheduled operating years. This underscores the project's strategic importance in diversifying the global supply chain for rare earths, which are currently dominated by Chinese production. An independent Initial Assessment, based solely on the ST1 deposit, estimates a high-case pre-tax net present value (NPV) of approximately $2.05 billion and a pre-tax internal rate of return (IRR) of 118.6%, including Indicated and Inferred Mineral Resources.

With the acquisition complete, Greenland Mines is advancing Sarfartoq toward a Pre-Feasibility Study (PFS). The company plans targeted infill drilling, pilot-scale metallurgical test work, mine engineering planning, environmental and social baseline studies, and drone-based magnetic surveys. These activities are essential to de-risking the project and providing the data needed for the PFS, which will be a critical milestone for financing and development decisions.

In a related development, Neo Performance Materials (TSX: NEO) has become a strategic shareholder in Greenland Mines through the transaction. Neo retains offtake rights for up to 60% of future Sarfartoq ore or mineral concentrate production for processing at its Silmet rare earth separation facility in Estonia. This partnership is significant as it secures a downstream processing pathway for Sarfartoq's output, enhancing the project's viability and aligning with Greenland Mines' broader strategy of building a North Atlantic Critical Metals Corridor linking Greenland resources with allied downstream jurisdictions and industrial infrastructure.

The completion of this acquisition marks a pivotal step for Greenland Mines, which operates with two divisions: Mining and Biotech. The Mining division focuses on the exploration and development of the Skaergaard Project in southeast Greenland and, now, the Sarfartoq project. The Biotech division is developing KLTO-202 for the treatment of ALS, but the company's strategy centers on building a multi-asset platform with exposure to rare earth magnet materials, precious metals, and selected midstream processing opportunities.

The global push for clean energy and the need to reduce dependence on Chinese rare earth supplies make the Sarfartoq project particularly timely. With its high IRR and strategic partnerships, Greenland Mines is positioning itself as a significant player in the non-Chinese rare earth market. The project's advancement to a pre-feasibility study will be closely watched by investors and industry analysts alike.