- Ironbark Zinc (IBG) signs a memorandum of understanding for a possible equity investment in its flagship Citronen project in Greenland
- Ironbark executed the deal with Leonhard Nilson & Sønner (LNS), which would see the Norwegian group become responsible for civil construction, mining contracting and logistic management at the project, plus a potential equity investment
- The MOU is non-binding and has an initial term of 12 months from signing, subject to any further date being agreed by the parties
- Ironbark Zinc is up 15.2 per cent to trade at 3.8 cents at 10:31 am AEST
Ironbark Zinc (IBG) has signed a memorandum of understanding (MOU) for a possible equity investment in its flagship Citronen project in Greenland.
Ironbark executed a non-binding MOU with Leonhard Nilson & Sønner (LNS), which would label the Norwegian group as its preferred contractor.
The group owns and operates mining businesses in both Greenland and Norway, specialising in high latitude civil, construction, mining and logistics businesses.
Should the deal go ahead, LNS would be contracted to work on key elements of the project including civil construction, mining contracting during the operations phase, and logistic management.
Additionally, the MOU contains a provision allowing broader commercial arrangements to be implemented, such as LNS completing due diligence on the Citronen project, and an equity investment.
IronBark Managing Director Michael Jardine said this could be the beginning of a “fundamental, long term, and valuable relationship” between Ironbark and LNS.
“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,” Michael Jardine said.
“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.”
The agreement has an initial term of 12 months from signing, subject to any further date being agreed by the parties.
Ironbark Zinc shares were up 15.2 per cent to trade at 3.8 cents at 10:31 am AEST.