Greenland-focused Greenroc IPOs on the AIM

On Monday, the ordinary shares of GreenRoc Mining (AIM: GROC) started trading on London’s junior AIM platform. The explorer seeks to capitalize on the growing demand for critical minerals its stable of Greenlandic assets could produce.

The company was created to buy the spun-out assets of Alba Mineral Resources (AIM: ALBA).

In its IPO, GreenRoc raised £5.1 million (US$6.9 million). It issued 111.2 million shares at 10 pence each, implying a market capitalization of £11.1 million (US$15.21 million).

GreenRoc’s assets include the Thule Black Sands ilmenite project, the Amitsoq graphite project (considered one of the highest-grade graphitic carbon projects globally), the Melville Bay iron project and the Inglefield multi-element project.

Of particular focus for GreenRoc are the graphite and titanium markets, which are designated as critical minerals by the EU and the USA. Company data suggests demand for graphite increasing by 2,500% by 2040, driven by the emerging electric vehicles sector.

Alba will retain a 54% shareholding in the company.

“With today’s IPO, we can offer investors an opportunity to gain exposure to a diversified mix of high-grade commodities designated as critical minerals by the EU and the USA, in a jurisdiction which is both strategically located for multiple end-markets and which remains supportive of sustainable resource development,” CEO Kirk Adams commented in the company’s first day of trading report.

According to Adams, the objective is to fast-track exploration supported by the newly topped-up treasury, add value to its core assets, and move them towards development. He said management was currently “carefully” planning a 12-month work program at the priority Amitsoz graphite and Thule ilmenite projects.

There is enormous interest in Greenland at the moment, given the success of Britain’s Bluejay Mining (LSE: JAY) and the fact Jeff Bezos and Bill Gates are backing minerals exploration in Greenland.

In August, KoBold Metals, a start-up supported by Gates and Bezos, partnered with Bluejay to explore for critical materials used in electric vehicles in Greenland.