FinnAust Mining PLC ORD 0.01p (LON:FAM), the AIM and FSE listed company with projects in Greenland & Finland, have today announced 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 Mining PLC ORD 0.01p 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.”