REG - GreenX Metals Ltd - Quarterly Activities Report December 2023
31/01/2024 07:00
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RNS Number : 3475B GreenX Metals Limited 31 January 2024
greenx metals limited
NEWS RELEASE 31 January 2024
Quarterly Activities Report December 2023
Highlights
· In July 2023 GreenX entered into an Option Agreement with Greenfields
Exploration Limited (Greenfields) to acquire up to 100% of the Eleonore North
Gold Project (Eleonore North) in eastern Greenland.
o 2023 field work at Eleonore North was focused on determining the depth of
an intrusion within the project area by deployment of an array of seismic
nodes. The nodes have been retrieved with the recorded data now being
processed by a geophysics specialist consulting firm. Results from the seismic
analysis, expected in the March 2024 quarter, will be used in the next phases
of the exploration program at Eleonore North.
o During the quarter, GreenX visited the Geological Survey of Denmark and
Greenland in Copenhagen and discussed general co-operation and data sharing in
respect of the Eleonore North region. GreenX also met with specialised arctic
logistics service providers having extensive experience in East Greenland.
o Eleonore North has the potential to host a "reduced intrusion-related gold
system" (RIRGS), analogous to large bulk-tonnage deposit types found in
Canada.
· In November 2022, the hearing for the claim against the Republic of
Poland under both the Energy Charter Treaty and the Australia-Poland Bilateral
Investment Treaty was concluded (Claim).
o Combined arbitration hearing took place in front of the Tribunal in London
under the UNCITRAL Arbitration Rules.
o With completion of the hearing, the Tribunal will render an Award
(decision) in due course.
o Damages of up to £737 million (A$1.3 billion / PLN4.0 billion) have been
claimed including the assessed value of GreenX's lost profits and damages
related to both the Jan Karski and Debiensko projects, and accrued interest
related to any damages.
· Cash balance as at 31 December 2023 was A$9.3 million.
Classification 2.2: This announcement contains inside information
GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company) is pleased to
present its Quarterly Activities Report for the period during and subsequent
to 31 December 2023.
eleonore north gold project
In July 2023, GreenX entered into an Option Agreement (Agreement) with
Greenfields to acquire up to 100% of the Eleonore North gold project in
eastern Greenland.
Eleonore North has the potential to host a RIRGS, analogous to large
bulk-tonnage deposit types found in Canada including Donlin Creek, Fort Knox
and Dublin Gulch.
Gold mineralisation documented at the high-priority Noa Pluton prospect within
Eleonore North.
· Geophysical "bullseye" anomaly 6 km wide co-incident with
elevated gold mineralisation from historical geochemical sampling.
· Anomalous gold mineralisation associated with quartz veining
exposed at surface over a length of up to 15 km.
· Historical sampling includes 4 m chip sample grading 1.93 g/t Au
and 1.9% Sb (refer to Appendix 1 of the Company's announcement on 10 July
2023).
Eleonore North has potential to host large scale, shallow, bulk tonnage gold
deposits. Eleonore North remains underexplored, with the existence of a
possible RIRGS being a relatively new geological interpretation based on the
historical data. Initial field work consists of a seismic survey to determine
the depth from surface to the Noa Pluton to aid in drill targeting.
Figure 1: Eleonore North licence area showing the 6km diameter geophysical
anomaly co-incident with gold veining visible at surface over some 15km at the
high priority Noa Pluton prospect
The Eleonore North license area contains other gold targets as well as copper,
antimony and tungsten prospects. At Holmesø there is copper and antimony
mineralisation outcropping at surface. Historical mapping and sampling in the
1970s at Holmesø show a prospective horizon between 15 m and 20 m thick, with
per cent level grades for both metals.
Eleonore North provides GreenX with gold exposure in Greenland and complements
GreenX's existing exploration prospect in Greenland, the Arctic Rift Copper
Project (ARC). There are significant synergies with regards to personnel,
logistics and equipment in having multiple exploration projects in Greenland.
Field works were conducted during the 2023 field season at Eleonore North,
with data collected from the seismic survey presently being analysed to inform
follow-on exploration program design.
Greenland is a mining friendly jurisdiction with strong Government support for
expanding its mining industry, simple laws and regulations, and a competitive
fiscal regime.
The primary target in Eleonore North is the Noa Pluton, followed by the
Holmesø prospect and its source intrusion. The Noa Veins provide a
near-term drill target, however, the Company's 2023 field work was focussed on
determining the depth of the causative intrusion with greater precision using
a passive seismic survey. Once analysed, this information will validate the
magnetic interpretation, provide more certainty for a future exploration
program, and help identify the size of the intrusion within the well-defined
hornfels.
Figure 2: Map of Greenland showing GreenX's ARC and Eleonore North license Figure 3: Map showing prospects and geological features within the Eleonore
areas North license areas
ARCTIC RIFT COPPER PROJECT
The ARC project is an exploration joint venture between GreenX and
Greenfields. GreenX can earn-in up to 80% of ARC by spending A$10 million by
October 2026. ARC is targeting large scale copper in multiple settings across
a 5,774 km(2) Special Exploration Licence in eastern North Greenland. The area
has been historically underexplored yet is prospective for copper, forming
part of the newly identified Kiffaanngissuseq metallogenic province.
The results of work program announced last year have demonstrated the
high-grade nature of the known copper sulphide mineralisation and wider copper
mineralization in fault hosted Black Earth zones and adjacent sandstone units.
The exact position of a native copper fissure at the Neergaard Dal prospect
was also identified.
Analysis of this information is underway and will be key to future planned
work programs.
DISPUTE WITH POLISH GOVERNMENT
In November 2022, the Company reported the conclusion of the Claim against the
Republic of Poland under both the Energy Charter Treaty (ECT) and the
Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties).
The hearing took place in London in and lasted two weeks.
Following completion of the hearing, the Tribunal will render an Award (i.e.,
the legal term used for a 'decision' by the Tribunal) in due course with no
specified date available for the Tribunal decision.
As previously advised, the arbitration and hearing proceedings in relation to
the Claim are required to be kept confidential.
Details of the Claim
The Company's Claim against the Republic of Poland is being prosecuted through
an established and enforceable legal framework, with GreenX and Poland
agreeing to apply the United Nations Commission on International Trade Law
Rules (UNCITRAL) rules to the proceedings. The arbitration claims are being
administered through the Permanent Court of Arbitration in the Hague.
The evidentiary hearing phase of the arbitration proceedings has now been
completed in front of the Arbitral Tribunal. With completion of the hearing,
the Arbitral Tribunal will render an Award in due course. There is no
specified date for an Award to be rendered. The Company's claims for damages
against Poland are in the amount of up to £737 million (A$1.3 billion/PLN4.0
billion), which includes a revised assessment of the value of GreenX's lost
profits and damages related to both the Jan Karski and Debiensko projects, and
accrued interest related to any damages. The Claim for damages has been
assessed by independent external quantum experts appointed by GreenX
specifically for the purposes of the Claim.
In July 2020, the Company announced it had executed the LFA for US$12.3
million with LCM. US$10.7 million of the facility has been drawn down to cover
legal, tribunal and external expert costs as well as defined operating
expenses associated with the Claim. The Company does not anticipate further
material drawdowns in relation to the ongoing BIT and ECT Tribunal
proceedings. The LFA is a limited recourse loan with LCM that is on a "no win
- no fee" basis.
In September 2020, GreenX announced that it had formally commenced with the
Claim by serving the Notices of Arbitration against the Republic of Poland. In
June 2021, GreenX announced that it had formally lodged its Statement of Claim
in the BIT arbitration, including the first assessed claim for compensation.
The Company's Statement of Reply, the last material filing to be made by the
Company for the BIT arbitration proceedings, was submitted in July 2021. The
Statement of Reply addresses various points raised by the Republic of Poland
in their Statement of Defence. The Statement of Reply also contains a
re-evaluation of the claim for damages based on responses to Poland's
Statement of Defence.
GreenX's dispute alleges that the Republic of Poland has breached its
obligations under the applicable Treaties through its actions to block the
development of the Company's Jan Karski and Debiensko projects in Poland which
effectively deprived GreenX of the entire value of its investments in Poland.
In February 2019, GreenX formally notified the Polish Government that there
exists an investment dispute between GreenX and the Polish Government.
GreenX's notification called for prompt negotiations with the Government to
amicably resolve the dispute and indicated GreenX's right to submit the
dispute to international arbitration in the event of the dispute not being
resolved amicably.
GreenX's investment dispute with the Republic of Poland is not unique, with
international media widely reporting that the political environment and
investment climate in Poland has deteriorated since the change in Government
in 2015. As a result, there are a significant number of International
Arbitration claims being bought against Poland.
CORPORATE
Financial Position
GreenX had cash of A$9.3m as at 31 December 2023.
-ENDS-
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
Forward Looking Statements
This release may include forward-looking statements. These forward-looking
statements are based on GreenX's expectations and beliefs concerning future
events. Forward looking statements are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control of
GreenX, which could cause actual results to differ materially from such
statements. GreenX makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the circumstances
or events after the date of that release.
Competent Persons Statement
The information in this report that relates to exploration results were
extracted from the ASX announcement dated 10 July 2023 which is available to
view at www.greenxmetals.com (http://www.greenxmetals.com) .
GreenX confirms that (a) it is not aware of any new information or data that
materially affects the information included in the original announcement; (b)
all material assumptions and technical parameters underpinning the content in
the relevant announcement continue to apply and have not materially changed;
and (c) the form and context in which the Competent Person's findings are
presented have not been materially modified from the original announcement
APPENDIX 1: TENEMENT INFORMATION
As at 31 December 2023, the Company has an interest in the following
tenements:
Location Tenement Percentage Status Tenement Type
Interest
Greenland Arctic Rift Copper Project (Licence No. 2021-07 MEL-S) -(1) Granted Exploration Licence
Greenland Eleonore North gold project -(2) Granted Exploration Licence
(Licence No's 2018-19 and 2023-39)
Jan Karski, Poland Jan Karski Mine Plan Area (K-4-5, K6-7, K-8 and K-9)(2) -(3) In dispute(3) Exclusive Right to apply for a mining concession(3)
Debiensko, Poland Debiensko 1 -(3) In dispute(3) Mining(3)
Notes:
(1 ) In October 2021, the Company announced that it had entered
into an Earn-In Agreement (EIA) with Greenfields to acquire an interest of up
to 80% in ARC. As at the date of this announcement, the Company held no
beneficial interest in ARC, other than through the EIA.
(2 ) In July 2023, the Company announced that it had entered into
an Option Agreement with Greenfields to acquire an interest of up to 100% in
Eleonore North. As at the date of this announcement, the Company held no
beneficial interest in Eleonore North, other than through the Option
Agreement.
(3 ) GreenX formally commenced international arbitration claims
against the Republic of Poland under both the ECT and the BIT in 2021. GreenX
alleges that the Republic of Poland has breached its obligations under the
Treaties through its actions to block the development of the Company's Jan
Karski and Debiensko projects in Poland. Refer to discussion of the Claim
above. The Company has received notice from the relevant Polish authority that
the Debiensko mining licence has been extinguished.
Appendix 2: Related Party Payments
During the quarter ended 31 December 2023, the Company made payments of
A$241,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (director fees, consulting fees and
superannuation of A$146,000 and the provision of a serviced office and company
secretarial and administration services of A$95,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 31 December 2023, the Company made the following
payments in relation to exploration activities:
Activity A$000
Greenland (Eleonore North and ARC)
Project Management 178
Exploration program, including sampling 27
Transport costs (including equipment and fuel) 5
Other (field supplies, equipment, fuel, satellite imagery, etc) 1
Total as reported in the Appendix 5B (item 2.1(d)) 211
There were no mining or production activities and expenses incurred during the
quarter ended 31 December 2023.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
GreenX Metals Limited
ABN Quarter ended ("current quarter")
23 008 677 852 31 December 2023
Consolidated statement of cash flows Current quarter Year to date
$A'000
(6 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (412) (787)
(e) administration and corporate costs (574) (937)
1.3 Dividends received (see note 3) - -
1.4 Interest received 159 252
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material)
(a) Business Development (105) (219)
(b) Property rental and gas sales 4 10
(c) Occupancy (236) (430)
1.9 Net cash from / (used in) operating activities (1,164) (2,111)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) Entities
(b) Tenements - -
(c) property, plant and equipment (2) (2)
(d) exploration & evaluation (211) (1,253)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (213) (1,255)
3. Cash flows from financing activities - 4,164
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (18) (154)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities (18) 4,010
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 10,715 8,674
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,164) (2,111)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (213) (1,255)
4.4 Net cash from / (used in) financing activities (item 3.10 above) (18) 4,010
4.5 Effect of movement in exchange rates on cash held (2) -
4.6 Cash and cash equivalents at end of period 9,318 9,318
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 1,818 2,715
5.2 Call deposits 7,500 8,000
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 9,318 10,715
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included (241)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities 18,040* 15,709
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities 18,040* 15,709
7.5 Unused financing facilities available at quarter end 2,331
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
On
30
Jun
e
202
0,
the
Com
pan
y
exe
cut
ed
a
Lit
iga
tio
n
Fun
din
g
Agr
eem
ent
(LF
A)
for
US$
12.
3
mil
lio
n
(*n
ow
wor
th
A$1
8.0
mil
lio
n
wit
h
the
mov
eme
nt
of
the
A$
com
par
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to
the
$US
)
wit
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LCM
Fun
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UK
Lim
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sub
sid
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of
Lit
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n
Cap
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Man
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men
t
Lim
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d
(LC
M),
to
pur
sue
dam
age
s
cla
ims
in
rel
ati
on
to
the
inv
est
men
t
dis
put
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bet
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n
Gre
enX
and
the
Pol
ish
Gov
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men
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t
has
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sen
out
of
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tai
n
mea
sur
es
tak
en
by
Pol
and
in
bre
ach
of
the
Ene
rgy
Cha
rte
r
Tre
aty
and
the
Aus
tra
lia
-
Pol
and
Bil
ate
ral
Inv
est
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Tre
aty
(BI
T).
LCM
wil
l
pro
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up
to
US$
12.
3mi
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on
(~A
$18
.0
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den
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in
US$
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in
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d
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our
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fin
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whi
ch
is
rep
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to
LCM
in
the
eve
nt
of
a
suc
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sfu
l
Cla
im
or
set
tle
men
t
of
the
Dis
put
e
tha
t
res
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s
in
the
rec
ove
ry
of
any
mon
ies
.
If
the
re
is
no
set
tle
men
t
or
awa
rd,
the
n
LCM
is
not
ent
itl
ed
to
any
rep
aym
ent
of
the
fin
anc
ing
fac
ili
ty.
In
ret
urn
for
pro
vid
ing
the
fin
anc
ing
fac
ili
ty,
LCM
sha
ll
be
ent
itl
ed
to
rec
eiv
e
rep
aym
ent
of
any
fun
ds
dra
wn
plu
s
an
amo
unt
equ
al
to
bet
wee
n
two
and
fiv
e
tim
es
the
tot
al
of
any
fun
ds
dra
wn
fro
m
the
fun
din
g
fac
ili
ty
dur
ing
the
fir
st
fiv
e
yea
rs,
dep
end
ing
on
the
tim
e
fra
me
ove
r
whi
ch
fun
ds
hav
e
rem
ain
ed
dra
wn,
and
the
n a
30%
int
ere
st
rat
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aft
er
the
fif
th
yea
r
unt
il
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t
of
dam
age
s
pay
men
ts.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,164)
8.2 (Payments for exploration & evaluation classified as investing activities) (211)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (1,375)
8.4 Cash and cash equivalents at quarter end (item 4.6) 9,318
8.5 Unused finance facilities available at quarter end (item 7.5) 2,331
8.6 Total available funding (item 8.4 + item 8.5) 11,649
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 8
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
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s
(i
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ne
t
ca
sh
in
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in
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8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
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rw
is
e,
a
fi
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re
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th
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es
ti
ma
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qu
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mu
st
be
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cl
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8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Not applicable
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 31 January 2024
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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