PERTH (miningweekly.com) – Junior Ironbark Zinc has inked a non-binding memorandum of understanding (MoU) with Norwegian group Leonhard Nilsen & Sønner (LNS) over a potential equity investment and services contract for the Citronen in Greenland.
Under the terms of the MoU, LNS could earn an equity position in the project in return for preferred contractor status on three key elements, including civil construction, mining contractor and logistic management for both the mining and construction phases.
Ironbark told shareholders on Monday that the MoU was the start of what could be a fundamental, long-term and valuable relationship.
“With their background in Arctic and Antarctic construction and mining, there are few, if any, groups anywhere in the world better qualified to help execute the vision we have for the Citronen project,” said Ironbark MD Michael Jardine.
“The challenges of undertaking an Arctic project for Ironbark would be significantly reduced with the project support and participation of LNS. This MoU potentially marries together the world-class Citronen deposit with the LNS team’s extensive experience in building and operating high latitude projects.”
A 2021 bankable feasibility study estimated that the project would require a capital investment of $654-million, delivering 2.5-million tonnes of zinc metal over a mine life of 20 years, or at an average of 130 000 t/y, with life-of-mine costs estimated at $0.76/lb.