Greenland Mines Ltd (NASDAQ: GRML) announced it has signed a first right of refusal agreement with Reykjanes Investment for a 60,000 square meter industrial site in Iceland's Helguvik area. The agreement covers the Stakkksbraut 9 property, which includes approximately 10,000 square meters of existing industrial buildings and access to up to 40 MW of power.

Under the updated Letter of Intent, if Reykjanes Investment receives a third-party offer to acquire the Helguvik site, it must first offer Greenland Mines an opportunity to acquire the property on equivalent terms. The site contains infrastructure from a former silicon metal plant that operated from 2016-2017 before ceasing operations due to environmental and operational issues.

The Helguvik industrial area is located adjacent to the deep-water Port of Helguvik on Iceland's Reykjanes Peninsula, approximately 4.5 kilometers from Keflavik International Airport. Greenland Mines said the location could serve as a processing hub for its Skaergaard Project in Greenland, with preliminary logistics studies indicating bulk carriers could cover the approximately 400-kilometer distance between the two sites in roughly 30 hours.

The site benefits from Iceland's renewable energy grid, which is supplied by hydro and geothermal power, offering industrial electricity tariffs that are lower than average industrial power prices in Europe and North America, according to the company.

"Since signing our initial Letter of Intent earlier this year, we have had a very constructive dialogue with Reykjanes Investment," said Bo Møller Stensgaard, president of Greenland Mines. The company stated it has no intention of reviving the type of operation that previously faced environmental challenges at the site.

Any decision to proceed with a processing facility at Helguvik remains subject to detailed engineering, economic and permitting studies, the company noted. Greenland Mines holds the Skaergaard Project, which contains an NI 43-101 Mineral Resource of 11.4 million ounces palladium equivalent indicated and 14.1 million ounces palladium equivalent inferred.