Major Step Towards Advancing Citronen Project Financing and ConstructionPerth, Jan 31, 2017 AEST (ABN Newswire) - Following the grant of a 30-year Mining Licence for the World Class Citronen Base Metal Project (Citronen) in Greenland, Ironbark Zinc Limited (Ironbark) (ASX:IBG) (OTCMKTS:IRBGY) is pleased to announce the immediate appointment of China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd (NFC)(SHE:000758) under an agreement to:
- Incorporate current Chinese equipment and construction costs into the Citronen Feasibility Study
- Prepare a project study report in compliance with the financing requirement of China's banks
- Ensure the technical criteria is in compliance with local laws, regulations, standards and codes in Greenland and China
- Assist Ironbark in securing Chinese project debt financing for the development of Citronen under the terms of the earlier Memorandum of Understanding
Ironbark views this agreement as a major step towards advancing the financing and development of Ironbark as it progresses to become one of the world's largest zinc mining companies.
Ironbark has selected NFC as providing the most technically capable, rapid and competitive construction engineers to deliver a turnkey, fixed price EPC solution to developing and commissioning Citronen.
Moving beyond the existing Memorandum of Understanding with NFC, Ironbark will see the Citronen Feasibility Study updated and tailored to meet the Chinese banking requirements that will target 70% debt financing and provide NFC with an option to acquire up to 19.9% of the Citronen project.
Ironbark is excited by this opportunity to work with NFC, one of the world's largest construction engineering groups that has the relevant experience and the capability to provide the key equipment for the Citronen project. NFC has a strong relationship with the Chinese banking sector that is expected to provide an excellent basis to achieve the debt funding objectives of 70% of the capital for Citronen.
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About China Nonferrous Metal Ind. FE & Const.
China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. is principally engaged in international project contracting, non-ferrous metal exploration at home and abroad, the production and sale of non-ferrous metal products as well as the manufacture of equipment and other businesses. During the year ended December 31, 2007, the Company obtained approximately 46% and 34% of its total revenue from its non-ferrous metal products and project contracting, respectively. The Company has operations in Iran, Iraq, Jordan, Zambia, Mongolia, Vietnam, the Philippines, Singapore and Thailand, among others. As of December 31, 2007, the Company had 15 major subsidiaries/associates.
About Ironbark Zinc Limited
Ironbark Zinc Limited (ASX:IBG) (OTCMKTS:IRBGY) is listed on the Australian Securities Exchange and is seeking to become a base metal mining house. Ironbark seeks to build shareholder value through exploration and development of its projects and also seeks to actively expand the project base controlled by Ironbark through acquisition. The management and board of Ironbark have extensive technical and corporate experience in the minerals sector. The wholly owned Citronen base metal project currently hosts in excess of 13.1 Billion pounds of zinc (Zn) and lead (Pb). Full details refer to ASX announcement 25 November 2014 - Citronen Project Resource Update - JORC 2012 compliant resource.
Ironbark Zinc Limited
China Nonferrous Metal Ind. FE & Const.