GreenX Metals (ASX:GRX) has entered into an earn-in agreement to earn a 90% interest in private German company Group 11 Exploration GmbH, which holds the Tannenberg exploration licence.
Tannenberg, which covers 272km2, is considered “highly prospective” for sediment-hosted copper deposits.
Under the agreement, GreenX Metals, which has a market capitalisation of $227.3 million, will issue the vendor 500,000 shares and will fund a work program up to €$500,000 ($830,338) by the end of 2025.
The work program will be sufficient to satisfy requirements for an extension of the licence to be granted.
Upon completion, GreenX can elect to acquire 90% of the fully diluted share capital of Group 11 on or before 31 December 2025 in return for GreenX paying $3 million to the vendor in shares.
If a Scoping Study is published by GreenX within five years of executing the agreement, GreenX will issue 5 million shares to the vendor.
CEO Ben Stoikovich says the company believes that Tannenberg has potential to host “large-scale and high-grade” copper deposits in the heartland of the German industry.
“Copper is officially recognised by the EU as a strategic raw material for European industry and ongoing decarbonisation in Europe,” Stoikovich says.
“This acquisition comes at a time when the German government and the EU have recently announced major policy initiatives to enhance security of supply of strategic raw materials such as copper by facilitating expedited permitting processes and access to project development funding.
“Germany, and in particular the State of Hesse, has a well-established mining industry with practical and efficient mine permitting processes. Furthermore, we anticipate increased political support for new copper projects in accordance with Germany’s Federal Ministry of Economic Affairs and Climate Action critical raw materials policies and the EU’s newly introduced Critical Raw Material Act.
“Tannenberg is complementary to our Arctic Rift Copper Project in Greenland and provides GreenX shareholders with enhanced exposure to strategic raw materials that are now a policy priority in both Germany and the wider EU.”
GreenX is planning future work programs that will support drill targeting. Initially, an in-country search for further historical drilling and mining records will be conducted.
The company will then move on to evaluate geophysical methods such as seismic and magnetic surveys for their effectiveness in delineating subsurface structures at the Richelsdorf Dome target.
Historical assay results will be used to uncover metal zonation patterns useful for exploration targeting.
A European-based technical team will be assembled to manage exploration activities at the project.
Write to Aaliyah Rogan at Mining.com.au
Images: GreenX Metals
