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REYKJAVIK - Amaroq Minerals announced the establishment of a new service company, Suliaq A/S, aimed at supporting Greenland’s burgeoning mining industry with essential equipment, operational goods, and services. The initiative is backed by an investment of up to 12 million pounds from British private firm JLE Group Ltd, with a primary focus on the mining, construction, and infrastructure sectors.
Under the terms of the agreement, subject to final negotiation, JLE will invest 4 million pounds for a 10% stake in Suliaq A/S, while Amaroq will retain the remaining 90%. Additionally, JLE has the option to increase its investment by another 8 million pounds, thereby securing a total of 30% ownership.
Suliaq A/S is set to be a fully-owned subsidiary of Amaroq at its inception, but upon completion of the deal, the ownership will be distributed as 90% to Amaroq and 10% to JLE. The initial investment is primarily earmarked for equipment procurement, which will not only benefit Amaroq’s operations but will also be available for lease to other operators in Greenland.
The new company will operate with an independent board and governance structure to ensure transparency and autonomous decision-making, including providing services to Amaroq at arm’s length.
Eldur Ólafsson, CEO of Amaroq, expressed confidence in the venture, citing the significant increase in metal research investment over the past five years and growing interest in infrastructure and energy development in Greenland. He emphasized that the collaboration with an experienced partner like JLE positions Amaroq to mitigate risks and create value not just for its shareholders but also for other businesses and the Greenlandic community as a whole.
This strategic move by Amaroq Minerals, in partnership with JLE Group, reflects the increasing focus on resource development in Greenland and the need for robust support services in the region’s mining industry. The formation of Suliaq A/S represents a step towards meeting the demand for specialized equipment and services crucial to the sector’s growth.
The information in this article is based on a press release statement.
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