Amaroq Minerals (LSE-A, TSXV: AMRQ) has raised £45 million (C$83.2 million) in an oversubscribed financing round to expand Nalunaq gold mine production in Greenland, a territory that has piqued the interest of U.S. President Donald Trump and other world leaders.
As announced earlier this week, the Toronto-headquartered Amaroq aimed to raise at least £30 million through the issuance of shares priced at 85 pence (C$1.57) each. Its main Nalunaq mine produced more than 350,000 oz. between 2004 and 2013 before being acquired by Amaroq in 2015. The funds are also to help create a new operations hub in the island’s west.
The offering was oversubscribed after issuing nearly 53 million new common shares, representing about 12% of its share capital, the company said Thursday. Shares in Amaroq Minerals fell 1.3% to $1.58 apiece by mid-Thursday in Toronto, valuing the company at $634 million.
Around 90% of the funds were secured from a broad range of institutional investors from the UK, U.S. and Europe, Amaroq said. EIFO, the export and investment fund of Denmark, which administers the territory, was among the notable participants, purchasing £11.3 million worth of shares. The fund has been an investor in Amaroq since 2019, and the new investment positions it as a top three investor in the company.
Strategic importance
“Greenland is a strategic priority for EIFO, and we aim to increase our activity,” EIFO CEO Peder Lundquist said. “We see this investment as an important part of our strategy to support the development of critical minerals and advance sustainable economic growth in Greenland.”
A 2023 survey by the European Commission showed that 25 of 34 minerals deemed “critical raw materials” by the bloc can be found in Greenland. Many of these deposits, due to their remote locations, have yet to be fully explored.
The Greenland government views the development of its mineral sector as a key strategy for economic diversification. Recently, its minister for mineral resources urged both the US and EU to increase their investments in Greenland’s resource development.
Growing footprint
“Greenland is one of the last remaining frontiers in the world and we recognize that in order to access the resource potential, whilst at the same time building the infrastructure to leverage the opportunity; a full cycle mining enterprise approach is required,” Amaroq CEO Eldur Olafsson said in a news release this week.
Amaroq, which poured first gold from its Nalunaq mine in late 2024, has set sights on several strategic metals throughout Greenland. In the south, it has two exploration projects that are prospective for copper, nickel, rare earths and other minerals. The company is also looking to set up a new exploration hub in the west, focusing on lead, zinc and silver.
As part of its expansion into western Greenland, Amaroq plans to acquire the previously operated Black Angel mine and a separate exploration licence area for US$10 million, which would be funded by the new equity raising. Upon completion, the company would become the largest mineral licence holder in Greenland with a total area of 7,501 square kilometres.
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