Ironbark Zinc’s world- class Citronen project is moving ever closer towards targeted production in 2019 after securing a key appointment to help with financing for the Greenland-based zinc project.
Highly credentialed tier one international financial advisory firm Cutfield Freeman & Co has been appointed to assist Ironbark structure financing for the project.
“This is an exciting time for the Company as it progresses toward the major project financing stage of the advanced and high margin, large scale Citronen zinc project at a period of such strong zinc prices. Ironbark is focused on working towards project financing and then moving into production,” the company said today.
“The Citronen project is exceptionally well placed to meet the strong and growing global demand for zinc and would be highly profitable in today’s environment and under a granted mining permit in a low sovereign risk jurisdiction, provides the Company with confidence that the financing process will be successfully achieved.”
CF&Co – an independent corporate finance house with offices in London, Toronto and Hong Kong – provides independent advice to companies in the mining and metals sectors on corporate, project and offtake-related finance, mergers and acquisitions, and joint ventures.
Ironbark has also begun identifying the project development team including the appointment of a Senior Project Manager and Senior Finance Manager.
Citronen represents one of the world’s largest undeveloped zinc-lead resources with a resource in excess of 13 billion pounds of contained zinc and lead metal.
The project is located in northern Greenland, a self-governed part of the Kingdom of Denmark and has a low level of sovereign risk.
Updated feasibility study results released last year show Citronen has an NPV of around US$1 billion with capital cost of US$514 million, production of up to 200,000tpa zinc metal and mine life of 14 years.
The feasibility study project execution document is currently being reviewed by CPC Engineering. Long lead items and logistical plans are being prepared to ensure a seamless transition into production.
Mining is planned to begin in 2019 with site preparation works being conducted this year.
The current market for zinc looks very healthy with zinc price recently hitting decade high levels of US$3400 per tonne on the back of falling LME inventories.
Ironbark also announced today that it was undertaking further assaying after identifying potentially significant Germanium a potential credit in some zinc ore bodies that formed in low temperature environments in the Citronen ore last month.
Shares in the company (ASX:IBG) closed 0.3c higher at 7.3c today.