Greenland Mines Ltd has completed its acquisition of Neo North Star Resources, bringing the Sarfartoq rare earths project in southwest Greenland into its mining portfolio following formal approval from the Government of Greenland.

Under the definitive agreement, Greenland Mines acquired the asset for $20 million in cash and $15 million in securities value. Neo Performance Materials Inc. has become a strategic shareholder in the company and 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.

The transaction follows the delivery of an independent Initial Assessment for the project, which demonstrated a high-case pre-tax net present value of approximately US$2.05 billion and a pre-tax internal rate of return of 118.6% using an 8% real discount rate. These figures include Indicated and Inferred Mineral Resources across a nine-year mine life processing 12.2 million tonnes at 1.4 million tonnes per annum at a delivered head grade of 1.32% total rare earth oxides. Excluding Inferred resources, the high-case pre-tax net present value stands at US$1.49 billion with an internal rate of return of 92.7%.

The Initial Assessment is based entirely on the ST1 deposit, which occupies less than 1% of the 191-square-kilometer Sarfartoq mineral exploration license. Five additional known rare earth occurrences along the approximately 32-kilometer outer ring structure remain largely untested. Neodymium and praseodymium account for approximately 84% of in-concentrate basket value at the deposit.

The resource base comprises Indicated Mineral Resources of 6.9 million tonnes at 1.60% total rare earth oxides and Inferred Mineral Resources of 5.3 million tonnes at 0.96% total rare earth oxides. This marks the first combined open-pit and underground hybrid model for the asset and introduces the project's first Indicated mineral resources in more than 15 years of exploration history. Earlier historical disclosures evaluated the ST1 zone under single-method scenarios and classified the entirety of the resource exclusively as Inferred.

Greenland Mines operates a mining division focused on the exploration and development of the Skaergaard Project in southeast Greenland alongside Sarfartoq.

Following closing, the technical team has returned to the site to advance development. Greenland Mines intends to conduct targeted infill drilling and deploy high-resolution, low-level drone-based magnetic surveys in September 2026 to identify and prioritize additional targets across the license. The company also plans pilot-scale metallurgical test work, mine engineering planning, and continued environmental and social baseline studies as it advances the project toward a Pre-Feasibility Study.

“The Sarfartoq acquisition is closed, and one of the Western world’s top-tier upstream rare earth magnet projects is now a Greenland Mines asset,” said Dr. Bo Møller Stensgaard, President of Greenland Mines. “At 2025 consumption levels, the NdPr oxide we plan to produce from ST1 alone would represent roughly a third of all NdPr oxide refined outside China, in every one of the Project’s nine scheduled operating years — and ST1 forms only a small part of a much larger system. Our technical team is back on the ground at Sarfartoq this month, and we move immediately from acquisition to further resource growth development.”

— Dr. Bo Møller Stensgaard, President of Greenland Mines

Read the full announcement: Greenland Mines Completes Acquisition of World-Class Rare Earth Nd-Pr Magnet and Defense Mine Asset Following Greenland Government Approval