Greenland Mines Ltd said on Monday it has completed the acquisition of the Sarfartoq rare earth project in southwestern Greenland from Neo North Star Resources for $20 million in cash and $15 million in securities.
The transaction grants Neo Performance Materials Inc. a strategic shareholder position and off-take rights for up to 60% of future ore or mineral concentrate production, which will be processed at Neo Performance’s facility in Estonia.
The Sarfartoq project, centered on the ST1 deposit, includes an indicated mineral resource of 6.9 million tonnes at 1.60% total rare earth oxide as of July 31, 2026, marking the first indicated resource in the project’s history. Inferred resources total 5.3 million tonnes at 0.96% total rare earth oxide. The exploration license covers 191 square kilometers, with the ST1 deposit occupying less than 1% of the area.
An initial assessment published in August estimated a pre-tax net present value of approximately $2.05 billion and a pre-tax internal rate of return of 118.6% under an optimistic scenario. The assessment is based on inferred resources, which remain too speculative to be classified as reserves.
The mining plan outlines a nine-year operation processing 12.2 million tonnes of ore at a rate of 1.4 million tonnes per year. Neodymium and praseodymium are projected to account for about 84% of the concentrate basket value. Based on 2025 consumption data, the project’s annual output of neodymium-praseodymium oxide would represent roughly 34% of all such refined oxide produced outside of China during each of the nine operating years.
Greenland Mines said infill drilling, pilot-scale metallurgical testing, mine engineering planning, and environmental studies will follow as the company advances toward a pre-feasibility study. A technical team is scheduled to return to the site in September 2026.
