Ironbark Zinc (ASX: IBG) continues to progress its Citronen Base Metal Project in Greenland with the formal provision of the Feasibility Study to partner China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC).
This is in accordance with the non-binding memorandum of understanding, under which the two companies will jointly establish the development program for delivery of the project.
Citronen is one of the world’s largest undeveloped zinc projects with a growing Resource currently pegged at more than 11 billion pounds of zinc and lead.
The MoU is a framework agreement under which NFC has undertaken to provide the following:
- Engineering, procurement and construction (“EPC”) on a fixed price and turnkey basis;
- NFC to facilitate funding of the project development costs from major banks in China for 70% of the EPC contract cost on a turn-key basis (subject to standard terms and acceptability of the banks);
- NFC is provided with an option to purchase up to 20% of the Citronen project directly on an mutually agreed valuation basis; and
- NFC entering into an offtake agreement for the concentrate products of the Project or a portion thereof.
“We are delighted that the Citronen project is continuing to progress towards development in the current tough funding environment. Ironbark’s partnership with NFC provides a pathway to funding and development of Citronen that minimises shareholder dilution,” Ironbark managing director Jonathan Downes said.
*China Nonferrous Metal Industry’s Foreign Engineering and Construction *
NFC is listed on the Shenzen Stock Exchange and is based in Beijing.
It constructs and sells a wide array of mining and equipment and is rated as one of the world’s top engineering firms by the US publication Engineering News Record.
NFC also operates a wide array of mines and processing plants around the world including zinc mines and a zinc smelter.
These include the Chambishi Copper Mine in Zambia and associated 150,000-ton copper smelter, Tumurtin-Ovoo Zinc Mine in Mongolia and Thai-China Lead-Antimony Alloy Plant in Thailand.
**
*Analysis*
Ironbark Zinc's provision of the Feasibility Study to NFC is another step towards progressing the Citronen project.
The Chinese group will be in a position to begin delivering the results from their work later in 2013, as has been previously flagged.
Notably, Citronen offers a long mine life with mineralisation open in almost every direction and is one of the few world class deposits that is wholly-owned by a junior company.
Production is also scheduled at a time of many planned zinc mine closures, a forecast shortage of zinc supply and anticipated high zinc prices.
Reported by Proactive Investors 9 hours ago.
This is in accordance with the non-binding memorandum of understanding, under which the two companies will jointly establish the development program for delivery of the project.
Citronen is one of the world’s largest undeveloped zinc projects with a growing Resource currently pegged at more than 11 billion pounds of zinc and lead.
The MoU is a framework agreement under which NFC has undertaken to provide the following:
- Engineering, procurement and construction (“EPC”) on a fixed price and turnkey basis;
- NFC to facilitate funding of the project development costs from major banks in China for 70% of the EPC contract cost on a turn-key basis (subject to standard terms and acceptability of the banks);
- NFC is provided with an option to purchase up to 20% of the Citronen project directly on an mutually agreed valuation basis; and
- NFC entering into an offtake agreement for the concentrate products of the Project or a portion thereof.
“We are delighted that the Citronen project is continuing to progress towards development in the current tough funding environment. Ironbark’s partnership with NFC provides a pathway to funding and development of Citronen that minimises shareholder dilution,” Ironbark managing director Jonathan Downes said.
*China Nonferrous Metal Industry’s Foreign Engineering and Construction *
NFC is listed on the Shenzen Stock Exchange and is based in Beijing.
It constructs and sells a wide array of mining and equipment and is rated as one of the world’s top engineering firms by the US publication Engineering News Record.
NFC also operates a wide array of mines and processing plants around the world including zinc mines and a zinc smelter.
These include the Chambishi Copper Mine in Zambia and associated 150,000-ton copper smelter, Tumurtin-Ovoo Zinc Mine in Mongolia and Thai-China Lead-Antimony Alloy Plant in Thailand.
**
*Analysis*
Ironbark Zinc's provision of the Feasibility Study to NFC is another step towards progressing the Citronen project.
The Chinese group will be in a position to begin delivering the results from their work later in 2013, as has been previously flagged.
Notably, Citronen offers a long mine life with mineralisation open in almost every direction and is one of the few world class deposits that is wholly-owned by a junior company.
Production is also scheduled at a time of many planned zinc mine closures, a forecast shortage of zinc supply and anticipated high zinc prices.
Reported by Proactive Investors 9 hours ago.