NunaMinerals A/S
NUNAMINERALS SIGN AN OPTION AGREEMENT WITH GREENLAND RARE EARTH PROJECTS LTD

NunaMinerals A/S 

22.08.2014 07:50

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The agreement concerns the Paatusoq Critical Metals Project situated in South
East Greenland 

Nuuk, 2014-08-22 07:50 CEST (GLOBE NEWSWIRE) -- NunaMinerals A/S (COPENHAGEN:
NUNA.CO / NUNA.DC) is delighted to announce that the Company has signed an
Option Agreement with Greenland Rare Earth Projects Ltd('GREP Ltd'), a
London-based exploration company who are actively developing a portfolio of
rare earth element projects in Greenland. Subsequent to a period of commercial
negotiations which followed the signing of a Letter of Intent in May 2014, GREP
Ltd and NunaMinerals formally entered an Option Agreement (the 'Agreement') on
Thursday 21th August 2014. The Agreement has the objective to advance the
development of NunaMinerals' Paatusoq Critical Metals Project (the 'Property')
which is located within NunaMinerals' 370 km2 Hugin exploration licence in
South East Greenland, where the company is also actively prospecting for gold. 

Ole Christiansen, CEO of NunaMinerals A/S stated, 'The Gardar Province of South
West Greenland is known to contain some of the earth's largest deposits of
critical metals, such as the rare earths, yet its continuation on the South
East coast of Greenland has remained enigmatic. NunaMinerals and GREP Ltd now
have a unique opportunity to unlock the mineral potential of the last remaining
virgin exploration target in this world class province. The agreement provides
an ideal synergy between NunaMinerals in-depth knowledge and expertise in
critical metal exploration in Greenland, and GREP Ltd's financial capabilities
and network within the global financial centre of London. We now look forward
to working alongside GREP Ltd to develop this recent addition to our
exploration portfolio, starting with a helicopter-borne geophysical survey over
the complex during September to delineate targets for a multi-phase, aggressive
field program in 2015.' 

Key terms of the Option Agreement

The Agreement pertains to a sub-area of NunaMinerals' Hugin exploration licence
encompassing the Paatusoq Syenite Complex. The Agreement is limited to Critical
Metals and associated elements or industrial minerals which may occur within
the same mineralised body. Under the terms of the Agreement 'Critical Metals'
are specified as the rare earth elements, niobium, tantalum, zirconium, uranium
and thorium. NunaMinerals retain the mineral rights to stand alone precious and
base metal (e.g. NunaMinerals' nearby gold prospects), which are also contained
within the Hugin licence area. 

Under the terms of the Option Agreement, GREP Ltd can acquire, incrementally
through three phases, a 65 % interest in the Property in exchange for funding
US$ 2.0 million (c. 11 MDKK) in exploration expenditures. Specifically under
the terms of the Option Agreement to earn a 65 % interest GREP Ltd will be
required to fund aggregate expenditures of US$ 2.0 Million over three years, to
earn the corresponding percentage interests in the Property as follows: 

  -- Phase I 
- 13 % interest in the Property by funding US$ 400,000 of expenditures
     before the end of 2014;
  -- Phase II 
 - an additional 26 % interest (a total undivided interest of 39 %) in the
     Property by funding an additional US$ 800,000 of expenditures before the
     end of 2015;
  -- Phase III - 
an additional 26 % interest (a total undivided interest of 65 %) in the
     Property by funding an additional US$ 800,000 of expenditures before the
     end of 2016.

Phase I of the Agreement is a firm commitment by GREP Ltd, which will be
dedicated to a helicopter-borne geophysical survey including magnetic and
radiometrics, scheduled to take place during September of this year. A further
exploration program targeting anomalies resulting from the airborne survey will
follow. 

Upon completion of the Agreement, GREP Ltd earning a 65 % interest in the
Property and in the event of successful exploration, the parties will enter
into a Joint Venture Agreement to further develop any discoveries made. 

Introduction to the Paatusoq Critical Metals Project

 The Paatusoq Critical Metals Project is located at the head of the Paatusoq
Fjord - a major deepwater fjord in South East Greenland that remains ice free
for the majority of the year providing access for shipping and facilitating the
mobilisation of exploration equipment. The project is focussed upon the
Paatusoq Syenite Complex, which is positioned only 10 kilometres South of
NunaMinerals' significant gold discovery at Jokum's Shear - part of the
Nanortalik Gold Belt which also hosts the company's flagship Vagar Gold
Project. The Paatusoq Syenite Complex is the most easterly of the major
alkaline central complexes in the mid-Proterozoic (1350-1140 Ma) Gardar
Alkaline Igneous Province of South Greenland. The Gardar Province is widely
acknowledged as a major critical metals depository, including the Kvanefjeld,
TANBREEZ and Motzfeldt Projects, all of which are regarded as world-class super
giant deposits. All of the aforementioned deposits are polymetallic with
multiple revenue drivers. Several companies in the region have submitted, or
are close to submitting, applications for exploitation (mining) licences. 

During a regional mapping campaign the Geological Survey of Denmark and
Greenland (GEUS) erroneously interpreted Paatusoq as part of the Rapakivi
Granite Suite, until dating of the complex later revealed its Gardar lineage
(1144 ±1 Ma; U-Pb dating of zircon). Limited stream sediment sampling by GEUS
demonstrates that the complex is coincident with rare earth and niobium
anomalies, which support the presence of mineralisation. Limited fieldwork by
NunaMinerals in 2013 established that the complex is not a homogeneous
intrusion as previously mapped, but comprises of a complex series of nested
syenite variants, including augite syenite, nepheline syenite, quartz syenite
and alkali granite pegmatites, along with other minor rock types. The complex
is considered prospective for rare earth elements, niobium, tantalum and
zirconium. A number of anomalous areas were identified during 2013; however the
majority of the complex remains un-sampled. Continued coverage of hard rock and
sediment sampling directed by helicopter-borne geophysics will be used to guide
subsequent exploration and identify prospective zones. On-going petrological
and lithogeochemical studies, in addition to cathodoluminescence and biotite
halogen analysis at the University of St Andrews (UK) is facilitating continued
exploration. The most intensively mineralised complexes in the Gardar Province
are associated with highly fluorine-rich fluids and red-luminescent alkali
feldspars. Initial results provide evidence of fluorine and carbonate-rich
mineralising hydrothermal activity associated with the syenite complex. Maximum
Fluorine Line analysis for Paatusoq yields comparable gradients to that of the
evolved Motzfeldt central complex, one of the most fluorine-rich fluid
environments in the Gardar Province and host to one of the world's largest
niobium-tantalum deposits, thus demonstrating that Paatusoq experienced a high
degree of interaction with fluorine-bearing fluids. 

The information presented in this announcement has been reviewed by both Dr
Adrian A. Finch (CERSA, University of St Andrews) and Dr Denis M. Schlatter,
EurGeol, a Qualified Person for the technical information presented under
NI-43-101 standards. Dr Finch, a consultant geologist on the Paatusoq Critical
Metal Project, has 25 years of experience with mineral deposits associated with
alkaline magmatism and has provided consultancy for several companies exploring
within the Gardar Province of South Greenland. Both Dr Schlatter and Dr Finch
have been onsite at Paatusoq during 2013. 



ABOUT NUNAMINERALS

NunaMinerals A/S is Greenland's leading company in the exploration of precious
and base metals as well as strategic metals. Firmly rooted in Greenland, the
company is well positioned to exploit the mineral potential of one of the
world's few remaining unexplored regions. The geology of Greenland has a number
of similarities with that of long-established mining countries such as Canada,
Scandinavia, South Africa and Australia, which all have substantial mineral
deposits of gold, platinum, nickel and copper, among other commodities. Setting
up partnerships that would bring further technical and financial expertise to
the development of the company's exploration prospects is a key element of
NunaMinerals' business model. NunaMinerals began operations in 1999 and is
headquartered in Nuuk, Greenland. The company is listed at NASDAQ OMX
Copenhagen A/S under the symbol 'NUNA' (Copenhagen: NUNA.CO). For more
information, please visit our website: www.nunaminerals.com. 

On behalf of the board

Ole Christiansen, CEO & Birks Bovaird, Chairman



Forward-looking statements contained in this announcement, including
descriptions of NunaMinerals' exploration and development projects, strategy
and plans, as well as expectations for future revenue and earnings, reflect
NunaMinerals' current views and assumptions with respect to future events and
are subject to certain risks, uncertainties and assumptions. There are many
factors that may cause actual results achieved by NunaMinerals to differ
materially from expectations for future results and expectations that may be
expressed in or form an assumption of such forward-looking statements. Such
factors include risks related to exploration, development and mining
activities, uncertainties related to the results of NunaMinerals' exploration
and development projects, including risks of delays or closure of projects,
price falls, currency fluctuations and changes in concession terms, legislation
and administrative practices, as well as competition risk and other unforeseen
factors. If one or more of such risks or factors of uncertainty were to
materialise, or should one or more of the statements provided prove to be
incorrect, actual developments may differ materially from the forward-looking
statements contained in this announcement. NunaMinerals is not under any duty
to update the forward-looking statements contained in this announcement or to
adjust such statements to actual results, except as may be required by law. 



For further information:

Ole Christiansen, CEO, phone: +299 36 20 01, mobile: +299 55 18 57
oc@nunaminerals.com 



         Ole Christiansen, phone +299 36 20 01, cellphone +299 55 18 57,
e-mail: oc@nunaminerals.com
News Source: NASDAQ OMX



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Language:     English
Company:      NunaMinerals A/S
              
               
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ISIN:         DK0016190986
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