Greenfields Exploration to Launch Equity Crowdfunding Campaign to Explore a New Mineral Province in Greenland

KEY TAKEAWAYS:

• Project incubator Greenfields Exploration aims to raise up to $5 million through a crowdsourced equity sale.
• The company is exploring a massive, newly-opened area of Greenland for copper, cobalt and nickel.

Perth-based Greenfields Exploration is using new crowd-sourced equity funding laws to fund its exploration of nearly 13,000km² of Eastern Greenland. The area is 20 times larger than the median 2017 ASX IPO, almost the size of Northern Ireland. The area has been identified by the Danish and Greenlandic governments as highly prospective for copper, cobalt and nickel.

Greenfields plan to use a ‘incubator’ model which applies a lean Silicon Valley approach to frontier exploration. The company has secured licences over vast areas of underexplored land and will conduct cost-efficient aerial exploration. Greenfields believes this big-picture, first-mover approach will generate many targets in addition to those identified 30-50 years ago. Then, Greenfields aims to split up the licences and partner with larger companies who will pay to take the projects forward to production, or spin them out as separate entities, while potentially paying Greenfields a cut of the profits.

“For many juniors, culturally the toughest time comes after a discovery when the adventurous spirit is squashed and explorers are replaced with a more conservative people,” said Jon Bell, Managing Director of Greenfields. “Under this model, Greenfields can maintain exposure to the upside, while keeping a lid on shareholder dilution, and maintaining the culture that leads to discovery in the first place. What we are good at – what we enjoy doing – is frontier exploration, not managing catering plans and cleaning contracts on a mine site. Sticking to what we do best, we create real value and put some adventure back into mineral exploration.”

Due to Greenland’s northern latitude and challenging conditions, the Company can only complete its exploration from June to September. “Within those dates, though, we can potentially explore 24/7,” said Mathew Longworth, Greenfields Chairman and former Managing Director at Heron Resources. “It’s an adventurous place to explore, but the potential is essentially untapped. And the location has some upsides – it’s relatively easy to load your copper straight onto a ship in Greenland and send it off to Europe and Asia, compared to your typical greenfield site. At the moment, companies are prepared to operate in the extreme conditions of Noril’sk or the unstable Congolese jungle. Greenland is just a different set of challenges.” According to Greenlandic government sources, the Greenfields licences are adjacent to some held by Perth-based Ironbark Resources and a company associated with Chinese giant Jiangxi Copper, so Greenfields is not the only company to recognise the potential of the region, but may be the first to undertake a big exploration program on it.

To fund the exploration program, Greenfields has turned to an equity crowdfunding. The crowdfunding service, introduced in September 2017, allows small companies to make an offer of their shares to the public as a pre-IPO offering. Greenfields is looking to raise up to of $5 million from their offer – the maximum allowed under the legislation. “We’ve seen millions of dollars come flooding in to crowd sourced equity funding in just a few months, so it’s clear there’s a real appetite for exciting, alternative investments,” said Lindsay Dick, Greenfields Director and General Counsel of blockchain energy start-up Power Ledger. “Greenfields is aiming high on the equity crowdfunding because we’re confident that there are plenty of investors out there who want to be part of something more interesting than what’s traditionally been offered. We have a huge area to explore – the more we raise, the more opportunities we have to uncover the mineral potential of this under explored region. We’re hoping as many people as possible will come exploring with us.”

The Greenfields Exploration equity crowd funding is currently accepting expressions of interest on the Billfolda platform for investments of $2,000 to $10,000.

About Greenfields Exploration

Greenfields intends to be a first-mover in an area that has the potential to host large, highgrade deposits of copper, cobalt, and nickel. With a land holding nineteen times that of its peers it is more likely to host deposits, and offers substantial economy-of-scale cost benefits. Greenfields aims to be a junior exploring like a major.

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