Greenland Resources expands exploration footprint at Malmbjerg moly project

Greenland Resources (TSX:MOLY) announced Wednesday the government of Greenland has granted it exclusive rights of a special exploration license consisting of 1,147.76 km² in the Semersooq region surrounding the company’s existing exploitation license for molybdenum and magnesium.  

The Canadian company said it now has a dominant mineral licence position on the east coast of Greenland. 

Molybdenum demand is experiencing strong growth, driven by its critical role in high-performance steel alloys, infrastructure, and the energy transition. Global demand is expected to rise from roughly 398,000 tonnes in 2024 to 500,000 tonnes/year by 2034, according to Research and Markets.  

Last year, Greenland Resources inked a long-term offtake agreement with Finland’s Outokumpu, the largest producer of stainless steel in Europe and the second largest in the Americas, for the supply molybdenum oxide produced at its flagship Malmbjerg project. 

Based on previous reports published by the Geological Survey of Denmark and Greenland, the geochemistry data from rock samples available in the new license area show multiple locations with highly anomalous molybdenum values that could potentially add to its Malmbjerg project, the company said, adding that an exploration program including hyperspectral surveys for the new concession will be established. 

By market close in Toronto, Greenland Resources stock was up 2.94%. The company has a C$235 million ($171 million) market capitalization.