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- Ironbark Zinc (IBG) has firmed up its balance sheet with a handy fee deferral and debt redraw agreement with the Greenland government
- Ironbark will redraw approximately $1.5 million previously contributed to its Greenland escrow account, originally slated to cover the rehabilitation of the exploration camp at its Citronen project
- The company has also secured a licensing fee deferral to the tune of $150,000
- With the $1.65 million boost to the company’s bottom line, the pathway to production at Citronen is now a little clearer
- Ironbark Zinc is up 28.6 per cent today, with shares trading for 0.9 cents each
Minerals explorer Ironbark Zinc (IBG) has firmed up its balance sheet with a handy fee deferral and debt redraw agreement with the Greenland government.
Cash boost
Ironbark has secured an agreement to redraw approximately $1.5 million of the $3 million previously contributed to its Greenland escrow account, originally slated to cover the rehabilitation of the exploration camp at its Citronen project.
Under the terms of the agreement, the drawdown will incur no interest, but must be repaid within 24 months. If the project moves into development within that timeframe, it’s likely that a revised bonding regime will be re-instated.
Due to ongoing pandemic travel restrictions into Greenland, there are currently no further site works planned for 2020, but Ironbark will be seeking to get things moving as soon as is reasonable given the prevailing global conditions.
The company has also secured a fee deferral to the tune of $150,000.
This sum accounts for the annual cost of Citronen licensing charges. Instead of paying the fee this quarter, Ironbark has been given a dispensation until the third quarter of next calendar year, at which time the fees for both this year and next will be paid.
A pathway to production
The overall $1.65 million boost to Ironbark’s cash position has left the company with a greatly enhanced cash position going forward.
IBG had $903,000 in cash on hand as at March 31, and the big liquidity boost has given the company a substantial funding runway to continue the off-site work underpinning the Citronen project.
Ironbark now plans to complete the work to revise the Citronen feasibility study by the end of 2020, including updating the processing plant design and layout, mine construction plan, and other minor elements of the existing feasibility study.
The company will also pursue the final approvals required ahead of development and financing, while also looking into further debt and equity funding pathways for the development phase.
The IBG board says it is now confident all project development activities are fully funded through to a financial investment decision for Citronen, expected by the end of 2021.
With the $1.65 million boost to the company’s bottom line, the pathway to production at Citronen is a little clearer, even amid the global uncertainties surrounding the pandemic outbreak.
Ironbark Zinc is up 28.6 per cent today, with shares trading for 0.9 cents each as at 12:30 pm AEST.
