Finnaust Mining buys two Greenland projects

Finnaust Mining buys two Greenland projects

Finnaust Mining (LSE:FAM) has acquired two new projects in Greenland, both formerly owned by Avannaa Resources, a subsidiary of Cairn Energy (LSE:CNE).

Finnaust will buy a nickel-copper-platinum deposit and a lead-zinc-silver deposit from Avannaa in an all-share deal.

Cairn will take a stake in Finnaust after the agreement is completed.

Rod Mcillree, Finnaust’s managing director said: “We feel we are now custodians of projects we consider to be globally significant, with analogies to existing, very large projects elsewhere in the world.”

Mcillree added that there was a “strong willingness of regulators and government to work with the industry” on new mining projects, within Greenland’s “stringent” environment laws.

“Over the last 10 years Greenland has really opened up. I think you’ll see more and more interest from a minerals point of view,” he explained.

Finnaust’s key focus remains on delivering production at the Pituffik titanium project which is also in Greenland.