Greenland Mines to Spin Off Biotech Division, Sharpens Focus on Rare Earths

Greenland Mines (NASDAQ: GRML) is set to spin off its biotechnology division in the fourth quarter of 2026, a move that underscores the company's transformation into a focused rare earths and critical minerals enterprise. The announcement comes alongside a series of corporate milestones, including formal approval from Nasdaq for its March 2026 transaction, which resolves prior deficiencies and brings the company into full compliance with listing requirements.

The company has also completed its acquisition of the Sarfartoq project in Greenland, following approval from the Government of Greenland on September 1. An independent S-K 1300 Initial Assessment for the ST1 deposit estimated a high-case pre-tax net present value of approximately $2.05 billion and a pre-tax internal rate of return of 118.6%. The planned annual production of neodymium-praseodymium (NdPr) oxide from ST1 would represent roughly 34% of current NdPr oxide refining capacity outside China, based on 2025 consumption levels, during each of the project's nine scheduled operating years. This positions Greenland Mines as a significant potential supplier in the global rare earth magnet supply chain, which is heavily dominated by China.

The strategic shift is further emphasized by changes to the company's board of directors. Riad El-Dada and Dr. Shalom Hirschman are stepping down, and Jason Hawkins, a capital markets veteran, is joining the board as Greenland Mines advances its Sarfartoq and Skaergaard projects. The Skaergaard project, located in southeast Greenland, is a palladium-gold-platinum deposit that adds to the company's diversified critical minerals portfolio.

The spin-off of the biotech division, which includes the development of KLTO-202 for the treatment of ALS, will allow Greenland Mines to concentrate its resources and management attention on its mining operations. This divestiture is expected to unlock shareholder value by separating the biotech and mining businesses, which have different risk profiles and capital requirements.

Greenland Mines' strategy is centered on building a multi-asset platform with exposure to rare earth magnet materials, precious metals, and selected midstream processing opportunities. The company's broader vision includes the North Atlantic Critical Metals Corridor, which aims to link Greenland's resources with allied downstream jurisdictions and industrial infrastructure, thereby reducing dependence on Chinese rare earth processing.

These developments come at a time when global demand for rare earth elements, particularly NdPr, is surging due to the growth of electric vehicles, wind turbines, and other clean energy technologies. By securing its own supply chain and refining capabilities, Greenland Mines is positioning itself to capitalize on this demand and strengthen the Western hemisphere's critical minerals security.

For more information on the company's latest news and updates, visit the company's newsroom at https://ibn.fm/GRML.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include those described under "Risk Factors" in the company's SEC filings. The company undertakes no obligation to update these statements unless required by law.