FinnAust welcomes regulatory changes in Greenland

Greenland and Finland-focussed mining company FinnAust Mining announced on Friday that the Government of Greenland had amended the standard terms for Exploration Licences for Minerals in Greenland.

The AIM-traded firm said that under a newly issued addendum, the expenditure obligations for exploration licences from year six to year 11 inclusive would be reduced to a zero expenditure requirement for 2017.

It said that will result in cost savings to the company, as it looks to advance its newly-acquired Avannaa licences in Greenland, now renamed Disko Exploration.

FinnAust said the decision by the Government of Greenland had been made following extensive industry consultation and direct dialogue with licence holders in the country, and was a clear demonstration of Greenland's supportive approach to its emerging minerals industry.

Following the recent acquisition of the Disko licences, FinnAust believed the new assets have significant resource potential and that the more favourable licensing environment will support their ongoing 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.

The company said those targets were the magmatic massive sulphide nickel, copper and platinum group elements at the Disko Project and the Kangerluarsuk Zinc, Lead and Silver Sed-Ex Project.

FinnAust also operates the Pituffik Titanium Project in Greenland, where bulk sampling was still scheduled to commence later this year.

The new addendum does not apply to Pituffik, which is within the zero-to-five year licence bracket.

“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,” said FinnAust CEO Roderick McIllree.

“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.”