Greenland Mines Closes Sarfartoq Rare Earths Acquisition, Bolstering Non-Chinese NdPr Supply

Greenland Mines (NASDAQ: GRML) announced the closing of its acquisition of the Sarfartoq Nd-Pr Rare Earths Project in southwest Greenland on September 1, 2026. The transaction, valued at $20 million in cash and $15 million in securities, marks a strategic milestone for the company as it seeks to strengthen its position in the rare earths market. Sarfartoq is projected to produce roughly 34% of all neodymium-praseodymium (NdPr) oxide refined outside China annually, based on 2025 consumption levels, during each of the project's nine scheduled operating years. This output would position Greenland Mines as a key supplier in the global effort to diversify rare earth sources away from China.

The project's potential is underscored by an independent Initial Assessment based solely on the ST1 deposit, which 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%. These figures include both Indicated and Inferred Mineral Resources, highlighting the deposit's economic viability. With the acquisition complete, Greenland Mines plans to initiate targeted infill drilling, pilot-scale metallurgical test work, mine engineering planning, environmental and social baseline studies, and drone-based magnetic surveys. These activities are designed to advance Sarfartoq toward a Pre-Feasibility Study, a critical step in the project's development timeline.

The transaction also brings strategic benefits through the participation of Neo Performance Materials, which became a shareholder in Greenland Mines as part of the deal. Neo retains offtake rights for up to 60% of future Sarfartoq ore or mineral concentrate production, intended for processing at its Silmet rare earth separation facility in Estonia. This partnership not only secures a market for Sarfartoq's output but also strengthens the integration of Greenland's rare earth resources with downstream processing capabilities in allied jurisdictions, aligning with Greenland Mines' broader North Atlantic Critical Metals Corridor vision.

The closing of the Sarfartoq acquisition is a significant development for the rare earth sector, which has been under pressure to reduce dependence on Chinese supply. NdPr is essential for manufacturing permanent magnets used in electric vehicles, wind turbines, and various electronics, making supply security a top priority for many governments and industries. By advancing Sarfartoq, Greenland Mines is contributing to a more resilient global supply chain, with potential implications for pricing and availability of these critical materials. The company's ongoing work will be closely watched by stakeholders as it moves toward a Pre-Feasibility Study, with expectations of further updates on the project's progress.