LONDON (Alliance News) - AIM-listed London Mining PLC Thursday said it has been awarded an exclusive 30 year exploitation licence for its Isua Project in Greenland, a significant development as it seeks partners to help develop the iron ore site.
Under the deal, London Mining would pay variable royalty rates to the Greenland government based on sales and tax rates, escalating over 16 years.
"Although new projects in iron ore currently do face funding challenges, we believe Isua's high quality product segment will become increasingly important to steelmakers to balance the growth in lower quality iron ore supply and the increasing importance of pellets in the evolving iron ore market," Chief Executive Graeme Hossie said in a statement.
"While London Mining's operational and capital allocation focus remains firmly on the recently announced expansion and mine life extension at its operating mine in Sierra Leone, the granting of the 30 year exploitation licence for Isua is an important validation of the extensive work to date and provides a solid basis for discussions with potential funders and partners required to move the project forward," he added.
The company's shares were down 1.5% at 131.95 pence Thursday afternoon.
By Steve McGrath; firstname.lastname@example.org; @stevemcgrath1
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