UK-based titanium exploration firm FinnAust Mining is set to acquire 100% of Avannaa as part of plans to increase its land position in Greenland.
The acquisition will include two of Avannaa projects in Greenland and the 194km² Disko-Nuussuaq Magmatic Massive Sulphide (MMS) nickel-copper-platinum project (Ni-Cu-PGE).
FinnAust will also acquire the 107km² Kangerluarsuk SedEx lead-zinc-silver project. These projects complement the company’s stated strategy of acquiring low-cost assets.
The company’s primary focus will be to remain on delivering production at Pituffik Titanium Project in Greenland.
FinnAust Mining CEO Roderick McIllree said: "This acquisition further consolidates FinnAust's position in Greenland and sees us add quality acreage to our Greenlandic portfolio, which already includes the unusually pure Pituffik Titanium Project.
“Having worked in Greenland extensively over the past ten years, my team and I have an excellent understanding of the resource opportunity in this emerging jurisdiction, the potential of which grows day by day as a result of environmental changes.”
Avannaa's Disko and Kangerluarsuk projects have high-grade base metal potential and are rare geological characteristics not often seen in the Cu-Ni-PGE and Zn-Pb-Ag mineral spaces.
Prior to Capricorn's involvement, mining houses such as Falconbridge and Vismand invested more than $50m on the projects over multiple campaigns.
McIllree further added: “Before announcing details of our work programme plan for these new assets, our team will first absorb the large datasets available to ensure that all future work delivers the success we have seen at Pituffik and maximises shareholder value."