Ironbark Zinc has been awarded a mining permit for the Citronen zinc-lead project in Greenland, and will now commence advanced development and financing activities.
The permit will last 30 years.
The company has signed on for a net smelter royalty agreement with the government of Greenland, beginning at 1 per cent in the first year of production and eventually rising to 2.5 per cent.
Zinc prices have increased around 25 per cent since the middle of this year to about $US1.25 per pound.
Ironbark managing director Jonathan Downes said the company was delighted to win the permit.
“This is a milestone and achievement of great importance to the company and our plans to develop the project into one of the world’s largest zinc mining operations,” he said.
“We will now move to advance project development and funding without delay.
“The award of the mining permit is the culmination of many years of effort by all of the Ironbark team, and I take this opportunity to thank them and our loyal shareholders for their commitment over this period.”
Shares in Ironbark fell 11 per cent to 9.8 cents each at the close of trading.
