Greenland Mines Ltd has cleared a key regulatory hurdle for its acquisition of the Sarfartoq rare earths project in southwest Greenland, receiving formal approval from the Government of Greenland for the indirect transfer of Mineral Exploration License MEL 2020-32.

Granted under Section 69(1) of the Greenland Mineral Activities Act by the Ministry of Business and Mineral Resources, the clearance satisfies a primary closing condition for the company's planned takeover of the project. Under the definitive acquisition agreement announced in May 2026, Neo Performance Materials Inc. secured offtake rights for up to 60% of future Sarfartoq production and became a strategic shareholder in Greenland Mines.

The Sarfartoq Carbonatite Complex stands out for its high concentration of neodymium and praseodymium, which are essential building blocks for permanent magnets used in electric vehicles, wind turbines, robotics, and defense systems. Its core ST1 zone hosts an exceptional neodymium-praseodymium ratio of 25% to 40% of total rare earth oxides. Unusually advanced for an exploration asset, the project is backed by more than 15 years of exploration, over 23,000 metres of drilling, historic mineral resource estimates, a preliminary economic assessment, extensive metallurgical testwork, and environmental baseline studies, alongside an existing 20-person camp and two ready-to-mobilize drill rigs.

Combined with Greenland Mines' flagship Skaergaard precious and critical metals project in southeast Greenland, Sarfartoq provides a dual-commodity platform designed to link upstream Arctic mineral resources with midstream and downstream processing infrastructure across the region, including the company's strategic position in Iceland.

Following the formal closing of the transaction, Greenland Mines plans to advance an updated resource estimate and economic study for Sarfartoq.

“This approval from the Government of Greenland is a fundamental milestone for our Company and for the future of Sarfartoq,” said Dr. Bo Møller Stensgaard, President of Greenland Mines Ltd.

Read the full announcement: Greenland Government Approves Rare Earths License Transfer to Greenland Mines