FinnAust Mining PLC Positive Changes to Greenland Licence Obligations (5360W)
10 February 2017 - 6:00PM
UK Regulatory
TIDMFAM
RNS Number : 5360W
FinnAust Mining PLC
10 February 2017
FinnAust Mining plc / EPIC: FAM / Market: AIM / Sector:
Mining
10 February 2017
FinnAust Mining plc ('FinnAust' or the 'Company')
Positive Changes to Greenland Licence Obligations
FinnAust Mining plc, the AIM and FSE listed company with
projects in Greenland & Finland, is pleased to announce that
the Government of Greenland has amended the Standard Terms for
Exploration Licences for Minerals (excluding hydrocarbons) in
Greenland. Under a newly issued addendum, the expenditure
obligations for exploration licences from year 6 to year 11
inclusive will be reduced to a zero expenditure requirement for
2017. This will result in cost savings to the Company as it looks
to advance its newly acquired Avannaa licences in Greenland, now
renamed Disko Exploration Limited ('Disko').
The decision by the Government of Greenland has been made
following extensive industry consultation and direct dialogue with
licence holders in Greenland, and is a clear demonstration of
Greenland's supportive approach to its emerging minerals industry.
Following the recent acquisition of the Disko licences (see RNS
dated 5 January 2017) FinnAust believes these new assets have
significant resource potential and this more favourable licencing
environment will support their on-going assessment. Historical work
by major mining houses such as Conminco, Falconbridge and RTZ
identified two large and very high-grade drill ready targets at the
Disko licences. These targets are the magmatic massive sulphide
Nickel, Copper and Platinum Group Elements at the Disko Project and
the Kangerluarsuk Zinc, Lead and Silver Sed-Ex Project.
The Company also operates the Pituffik Titanium Project
('Pittufik') in Greenland where bulk sampling is scheduled to
commence later this year. The new addendum does not apply to
Pituffik, which is within the 0-5 year licence bracket.
FinnAust CEO Roderick McIllree said, "This type of consultative
and cooperative approach between Government and licensee is another
clear demonstration of Greenland's commitment to, and support of, a
growing minerals industry. Greenland is endowed with outstanding
prospectivity, has established infrastructure and a strong rule of
law. In a world where there are many examples of jurisdictions not
supporting their mining industry, Greenland stands out as a country
that's open for business."
**ENDS**
For further information please visit www.finnaust.com or
contact:
FinnAust Mining +44 (0) 20 7907
Roderick McIllree plc 9326
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FinnAust Mining +44 (0) 20 7907
Graham Marshall plc 9326
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SP Angel Corporate +44 (0) 20 3470
Ewan Leggat Finance LLP 0470
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SP Angel Corporate +44 (0) 20 3470
Laura Harrison Finance LLP 0470
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St Brides Partners +44 (0) 20 7236
Elisabeth Cowell Ltd 1177
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St Brides Partners +44 (0) 20 7236
Charlotte Page Ltd 1177
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Notes
FinnAust has a number of highly prospective licences at various
stages of development in Greenland and Finland. The Company is dual
listed on the London AIM market and Frankfurt Stock Exchange.
The Company is currently focussed on advancing the Pituffik
Project in Greenland, an area that has only recently revealed its
mineral potential following changes in the climate. Pituffik, which
FinnAust conditionally acquired in December 2015, has demonstrated
the potential to be in the top percentile of projects worldwide in
terms of heavy mineral grade.
Pituffik comprises three main target areas along an >80km
coastline historically proven to contain large and high-grade
accumulations of primary ilmenite occurring as placer deposits in
the following environments:
-- Raised beaches; containing ilmenite accumulations over widths
of more than 1km, of unknown depths, along more than 20km of
coastline;
-- Active beaches; which refer to the area seaward of the
frontal dunes, including the beach, tidal zones and surf zone -
historically samples from this area have achieved 70% ilmenite by
weight; and
-- Drowned beaches; refers to the areas seaward of active beaches.
The Company's strategy is focused on the production of a bulk
sample "proof of concept" from the Pituffik Project in 2017 with
the aim of ultimately generating cash flow to create a company
capable of self-funding exploration on future acquisitions.
FinnAust has an interest in 60% of Bluejay Mining Limited the
holder of the Pituffik exploration licence and has an option to
acquire the remaining 40%.
FinnAust also holds a 100% interest in a portfolio of copper,
zinc and nickel projects in Finland. This multi-commodity portfolio
remains a strategic asset of importance and has been restructured
to be cost-sustainable whilst determining the best plan for future
development.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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