Ironbark Zinc Ltd (ASX:IBG) has executed the impact benefit agreement (IBA) with all four municipalities in Greenland for the Citronen Fjord project in North Greenland.
The Citronen Project represents one of the world’s largest undeveloped zinc-lead projects with a resource base 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.
Ironbark has agreed with the municipalities to recruit a large proportion of local workers, out of the 470 people who will be working on the mine in the operational phase.
Additionally, purchases are expected to be made through Greenlandic suppliers for Danish Krone (DKK) 650 million in the construction phase and for DKK 800+ million in the operating phase.
Moreover, three funds will be set up totalling DKK 600,000, focusing on promoting Greenlandic culture, social/sports initiatives, education and training.
It is worth noting that Ironbark has an undrawn US$50 million funding facility provided by Glencore PLC (LON:GLEN) to expand its project base through acquisition.
A feasibility study in April 2013 had projected a net present value of US$609 million for the Citronen Project over a mine life of 14 years.
Ironbark’s share price has increased by about 49% since the beginning of 2016, last trading at $0.07.
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