Amaroq Minerals reports strong third-quarter progress

The AIM-traded firm said working capital for its gold business, before convertible note liability, stood at $37.9m, supported by prepaid contractors on its Nalunaq project.

It said the Gardaq joint venture, covering strategic minerals, maintained liquidity of $8.3m as of the quarter-end.

Financially, Amaroq took steps to streamline its capital structure, including an agreement post-period to convert $22.4m of convertible notes into new common shares.

That move was expected to simplify the balance sheet, reduce cash interest costs, and enhance financial flexibility.

Amaroq said it was also finalising documentation for a substantial increase in debt facilities with Landsbankinn, adding $35m in revolving credit, enhancing its funding base.

Operationally, Amaroq reported substantial completion in several critical areas of the Nalunaq gold project.

Key contract procurement is complete, and construction on the plant pad earthworks and civil foundations was finished.

Significant progress was achieved in mechanical installations, with work on the grinding circuit and other key infrastructure nearly complete.

Mining development continued in the Mountain Block, where the ramp reached the 742 level, and preparations for exploration and further development advanced.

The company said its exploration efforts saw the conclusion of its 2024 drilling programme, totaling over 8,600 metres across its gold and strategic metals portfolio, with results anticipated in the coming months.

Amaroq also reported ongoing efforts to enhance procurement options locally and reduce environmental impact through initiatives in service and hydroelectric support.

“We are now on the cusp of achieving first gold at Nalunaq, a major milestone which will start initial cash flow ahead of a ramp-up to commercial production,” said chief executive officer Eldur Olafsson.

“Over the third quarter we made significant headway at Nalunaq.

“Many of the major components of the processing plant were installed successfully and the development within the mine in the ‘Mountain Block’ enabled the first ore to be stockpiled for first gold production due this quarter.”

Olafsson said the company’s exploration programme at Nalunaq had furthered its understanding of the high-grade deposit with a drilling campaign on the ‘Target Block’ expansion and the 75 Vein.

“Results on this and the first ore drives in Mountain Block are expected soon.

“We believe these results, also incorporating the last two years’ drill results, will provide for an updated mineral resource estimate (MRE4) for Nalunaq early next year.

“The exploration season was in full swing in the third quarter, and I’m very proud of what our exploration team has achieved this year.”

In addition to its on-going work at Nalunaq, Eldur Olafsson said the company drilled the first two holes at Nanoq in its Gold portfolio, adding that across its strategic minerals portfolio its drilled two holes in Target North at Sava, undertook a three-drill rig campaign at Stendalen and drilled two scout holes at the historical Josva copper mine.

“We expect results from all of these campaigns over the next few months.

“This has laid a solid foundation for further gold, copper and nickel exploration activities next year as we continue to unlock the full value of our portfolio in Greenland.”

At 1435 GMT, shares in Amaroq Minerals were up 1.96% at 78p.

Reporting by Josh White for Sharecast.com.