PRESS RELEASE: Under the memorandum of understanding between Ironbark Zinc and Byrnecut Offshore, the contractor would deliver underground contract mining services, underground mine cost modelling and the underground mining fleet, as well as holding the debt and security of the equipment.

Ironbark said it's seeking to remove key capital items off the capital cost of the Citronen project. The parties will work towards a more detailed cost-based commercial agreement operating under agreed margins through each project stage.

The resources company is in discussions with other groups for the remaining disciplines or to support the project, which have the potential to collectively and significantly assist with the overall project financing.

Byrnecut will operate under the Greenland government guidelines and will assist Ironbark achieve its training and employment obligations. A Byrnecut technical representative will be visiting the site in late August.

Ironbark Zinc's managing director, Jonathan Downes, said: "Byrnecut have the capacity to provide Ironbark with an immediate ‘bolt-on' underground mining expertise that will assist Ironbark as we move from financing to active mining.

"While only at an early stage, we consider this is a very positive step towards the projects development and financing. Byrnecut is aware and supportive of the training and employment obligations that Ironbark is operating under in Greenland."

Ironbark's wholly owned Citronen project is held under a granted 30-year mining licence, and it's continuing to work towards project financing.