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- Ironbark (IBG) has received a section 19-43 Permit —which sets out the exploitation plan and closure requirements for its Citronen Project — from the Government of Greenland
- Ironbark said this is the final step needed before a final investment decision is made to proceed at the Citronen Zinc Led Project in 2021
- The approval also signifies the end of a nine-year permitting process covering Ironbark’s mining licence to access one of the world’s largest undeveloped zinc resources
- If a decision to proceed is made in the second half of 2021 then Ironbark will mobilise to site in the Greenlandic summer of 2022
- Investor’s responded positively to the announcement as Ironbark shares closed 9.9 per cent up at 2.4 cents each
Ironbark (IBG) has received a section 19-43 Permit —which sets out the exploitation plan and closure requirements for its Citronen Project — from the Government of Greenland.
It’s big new for the business, as its the final step before an investment decision is made next year to proceed at the Citronen Zinc Led Project.
The approval also signifies the end of a nine year permitting process covering Ironbark’s mining licence to access one of the world’s largest undeveloped zinc resources, with a resource of more than 13 billion pounds of contained zinc and lead metal.
Ironbark Managing Director Michael Jardine said the announcement is significant on multiple levels.
“It removes the final permitting based impediment to an investment decision in
2021, with only the post FID Section 86 approval yet to be granted,” he said.
“It will greatly assist with the project financing challenge as our partners at EXIM Bank, along with most commercial debt providers, typically do not take permitting risk on projects,” he added.
“And finally, it puts further distance between Ironbark and its in-country peers with respect to establishing Greenland’s first large scale mining operation,” he concluded.
Exploration licences
Exploration licences are granted by the Greenland government pursuant to the Mineral Resources act and are eligible for 5 year terms.
An exploitation or mining licence must be issued by the Government of Greenland before exploration for economic mineral resources can commence.
Once this licence is granted, an application describing the planned exploitation activities and the closure of the mine must be submitted to the Mineral Resources Authority.
The application, commonly known as the section 19-43 is subject to approval by the Government of Greenland.
Next steps
Following the permit approval, it is anticipated that if a decision to proceed is made in the second half of 2021 then Ironbark will mobilise to site in Greenlandic summer of 2022.
Investor’s responded positively to the announcement as Ironbark shares closed 9.9 per cent up at 2.4 cents each.
