Alba Mineral gets green light to acquire further Greenland stake

Greenland’s Mineral Licensing and Safety Authority (MLSA) confirmed that the government has approved the transfer of exploration licence 2013/06, comprising of the Amitsoq graphite project in southern Greenland, to Alba

The AIM-listed company already owned a 49% in the project, and sought, subject to regulatory approval from the Greenlandic authorities, to buy a further 41% interest in the project to take Alba to 90% ownership in total.

Alba will now proceed to complete the acquisition of the further 41% stake by the transfer of shares in the licence holder, Obsidian Mining, for the balance of £90,000 in cash or Alba shares. Alba will then own 90% of the project.

When the acquisition is completed Alba will also take over the existing put and call option over the 10% carried interest held by a minority shareholder in the project, which would enable the company in the future to own 100% of the project.

Alba executive chairman George Frangeskides said: "We are delighted to receive the approval of the government of Greenland to Alba acquiring up to 100% ownership of the project.

“This provides Alba with a strong foundation as we continue to plan our work programme for this year and look to build on the significant steps forward we have made in relation to the Amitsoq project over the past 12 months."

Shares in Alba Mineral Resources were down 2.63% to 0.341p at 0805 GMT.