Ram Resources (ASX: RMR) has agreed to buy the potentially large Motzfeldt tantalum-niobium project in Greenland. This would be acquired via Ram buying the tantalum-niobium project by buying unlisted UK-based Greenland Resources Ltd. Ram will buy an initial 51 per cent interest in Greenland Resources Ltd through the issue of 280 million ordinary fully paid shares and a further 280-million options, each with an exercise price of 3c an option. Following the completion of the acquisition of the initial interest, Ram would have the option of acquiring a further 19 per cent of the issued capital of GRL by paying to the vendor $1 million in cash within three years, and by providing funding of $10 million. Ram could increase its shareholding to 90 per cent by paying a further $2 million cash and providing funding of $15 million.
The Motzfeldt project is a diverse minerals deposit that is primarily being targeted for tantalum, niobium, and rare earth elements (REE), though zircon, uranium and thorium are also in the mineralised zone. The company s said exploration targets estimated the size at 200-500 million tonnes at an average grade of 1000-1400ppm niobium and 100-120ppm tantalum.
Additional Resources: (1) Tantalum Capacitors: World Markets, Technologies & Opportunities: 2010-2015 ISBN # 1-893211-11-8 (© April 2010) (2) TANTALUM: Global Market Outlook: 2008-2013 ISBN # 0-929717-81-3 (2008)