Greenland Mines Ltd (NASDAQ: GRML) has entered into a non-binding letter of intent with an Icelandic industrial site owner to evaluate a brownfield processing facility for its Skaergaard project in East Greenland.

The company is exploring multiple industrial sites in Iceland ranging from 100,000 to 200,000 square meters with deep-water harbor access and power grid connections to Iceland's geothermal and hydropower system. The strategy aims to establish a downstream processing hub for material from the Skaergaard Gold, Palladium, Platinum and Critical Metals Project.

Greenland Mines estimates the Iceland processing approach could save over $1 billion in life-of-mine energy costs compared to diesel-based Arctic operations. The company projects power costs could potentially fall below $0.03 per kWh using Iceland's renewable energy, compared to $0.20 per kWh or higher for diesel generation in remote Arctic locations.

The Skaergaard project is located approximately 400 kilometers from deep-water facilities in northwestern Iceland, representing an estimated 20-30 hour bulk-carrier sailing time. The company is also evaluating pre-processing options in Greenland, such as crushing and ore-sorting, before shipment to Iceland.

"By moving now to evaluate multiple industrial sites in Iceland – and by already having a signed non-binding Letter of Intent in place for such an activity with a local industrial site owner – we are turning our North Atlantic processing vision into a real, structured program," said Bo Møller Stensgaard, President of Greenland Mines.

The Skaergaard project hosts a 2022 NI 43-101 Indicated and Inferred Mineral Resource of 25.4 million ounces palladium equivalent and 23.5 million ounces gold equivalent. Greenland Mines holds an 80% interest in the project with an option to acquire the remaining 20%.