Major Precious Metals Corp. provided an update on the latest developments in Greenland regarding mining and exploration activities and their possible effects on the Skaergaard Project.
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Major Precious Metals is in the process of scheduling a huge diamond drilling program on its Skaergaard project from late June to early July 2021 and more details will be announced shortly.
In Greenland, the results of recent elections have led to a new coalition government that continues to significantly support mining and exploration developments in the country. This has manifested itself with the full support and recent conditional approval of the company’s drilling and exploration plans for the Skaergaard project by the Greenland Mineral Licensing and Safety Authority (MLSA).
Major Precious Metals has worked directly with MLSA on their upcoming drilling programs and the feedback has been mostly positive. Final approvals are expected once final drilling plans and related documentation have been approved by MLSA staff.
International funding for Greenland strategic or critical mineral projects
Greenland remains a low-risk, stable, pro-mining jurisdiction with strong financial support from North American and European financial agencies and institutional banks, as well as organizations backed by the European and Greenlandic governments. In addition, Greenland is strategically located with direct access to European and North American markets.
Letters of Intent (LOI) have recently been signed by global mining companies with advanced projects in Greenland, such as Bluejay Mining plc (Bluejay) and Ironbark Zinc Limited (Ironbark) to acquire low-rate debt financing from interest with favorable loan conditions from Export-Import. Bank of the United States (EXIM) to provide the necessary capital to advance their mining projects through the bankable feasibility phase.
EXIM is an independent executive agency and is the official export credit agency of the United States for the purpose of supporting American jobs by facilitating the export of American goods and services.
November 2nd, 2020, Ironbark announced that it has secured a letter of intent from EXIM for an interim amount of US $ 216 million in debt financing for its Citronen Zinc-Lead project located in northern Greenland.
Under the letter of intent, Ironbark can choose a direct or secured loan. For the direct lending option, the interest rate is set at the Benchmark Commercial Interest Rate (CIRR) – the official lending rate of export credit agencies. The current CIRR for transactions with a payback period of 8.5 years is 1.46%.
February 15eIn 2021, Bluejay announced that it had secured a letter of intent from EXIM for interim US $ 208 million in debt financing on similar terms for its Dundas Ilmenite (titanium dioxide) project located in the northwest of Canada. Greenland.
As of now, Ironbark has continued with the EXIM loan process. Bluejay continues to investigate EXIM eligibility criteria and has also made progress in discussions with European export credit agencies and other conventional commercial lenders to ensure maximum quality and the most favorable trading terms available for the advancement of its Dundas project.
EXIM has tactically invested in mining projects in Greenland due to the wealth of critical or strategic minerals in some of the world’s largest undeveloped mineral deposits. These critical and strategic minerals include the platinum group metals (platinum and palladium), zinc-lead-copper, rare earth elements (REE), gallium, vanadium, titanium and many more that are found usually in Greenland.
These products are considered critical minerals because they have been deemed crucial to the national and economic security of the United States. Large quantities of many of these critical metals are found in the Skaergaard Project. These include platinum, palladium, gallium, titanium, and vanadium.
As Major Precious Metals builds the Skaergaard project over the next few months, it could be strategically positioned to capitalize on these sources of funding from US and European export credit agencies to develop the Skaergaard project through the mining feasibility phase. in a way that uses strategic capital in a non-dilutive manner for shareholders and also supports the economics of that project itself.