Major Step Towards Advancing Citronen Project Financing and Construction
Agreement with China Nonferrous
Perth, Jan 31, 2017 AEST (ABN Newswire) - Following the grant of a 30-year Mining Licence for the World Class Citronen Base Metal Project (Citronen) in Greenland, Ironbark Zinc Limited (Ironbark) (
ASX:IBG) (IRBGY:OTCMKTS) is pleased to announce the immediate appointment of China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd (NFC)(SHE:000758) under an agreement to:
- Incorporate current Chinese equipment and construction costs into the Citronen Feasibility Study
- Prepare a project study report in compliance with the financing requirement of China's banks
- Ensure the technical criteria is in compliance with local laws, regulations, standards and codes in Greenland and China
- Assist Ironbark in securing Chinese project debt financing for the development of Citronen under the terms of the earlier Memorandum of Understanding
Ironbark views this agreement as a major step towards advancing the financing and development of Ironbark as it progresses to become one of the world's largest zinc mining companies.
Ironbark has selected NFC as providing the most technically capable, rapid and competitive construction engineers to deliver a turnkey, fixed price EPC solution to developing and commissioning Citronen.
Moving beyond the existing Memorandum of Understanding with NFC, Ironbark will see the Citronen Feasibility Study updated and tailored to meet the Chinese banking requirements that will target 70% debt financing and provide NFC with an option to acquire up to 19.9% of the Citronen project.
Ironbark is excited by this opportunity to work with NFC, one of the world's largest construction engineering groups that has the relevant experience and the capability to provide the key equipment for the Citronen project. NFC has a strong relationship with the Chinese banking sector that is expected to provide an excellent basis to achieve the debt funding objectives of 70% of the capital for Citronen.
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http://abnnewswire.net/lnk/WI6FV517
About Ironbark Zinc Limited
Ironbark Zinc Limited (ASX:IBG) (OTCMKTS:IRBGY) is listed on the Australian Securities Exchange and is seeking to become a base metal mining house. Ironbark has an undrawn US$50M funding facility provided by Glencore to expand its project base through acquisition.
Ironbark seeks to build shareholder value through exploration and development of its projects and also seeks to actively expand the project base controlled by Ironbark through acquisition. The management and board of Ironbark have extensive technical and corporate experience in the minerals sector.
The wholly owned Citronen base metal project currently hosts in excess of 13.1 Billion pounds of zinc (Zn) and lead (Pb). For full details refer to ASX announcement 25 November 2014 –Citronen Project Resource Update – JORC 2012 compliant resource.
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