Amaroq raises £45 million to fund Greenland expansion

Greenland-focused Amaroq Minerals (AIM, TSXV: AMRQ) has raised £45 million in an oversubscribed financing round to support its strategy of tapping into the island’s rich mineral resources, which have garnered interest from the world’s superpowers, including the US.

As announced earlier this week, Toronto-headquartered Amaroq aimed to raise at least £30 million (approximately C$55.5m) through the issuance of shares priced at 85 pence (C$1.57) each. The funds would be used to support the company’s production expansion plans at its flagship Nalunaq gold mine in southern Greenland, as well as create a new operations hub in the western part of the island.

On Thursday, Amaroq announced that the offering was oversubscribed to £45 million (C$83 million), with the issuance of nearly 53 million new common shares, representing approximately 11.7% of its share capital.

The stock traded at 84.4 pence in London and C$1.58 in Toronto as of midday Thursday, for a respective market capitalization of £346.6 million and C$634.5 million.

According to the company, around 90% of the funds were secured from a broad range of institutional investors from the UK, US and Europe. EIFO, Denmark’s state-backed export and investment fund, 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 in a statement. “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.

Amaroq’s 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 press release this week.

Amaroq, which poured first gold from its Nalunaq mine in late 2024, has set its 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 $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 km².

Its Nalunaq gold mine was also a past producer, churning out more than 350,000 oz. between 2004 and 2013 before being acquired by Amaroq in 2015.