VANCOUVER, British Columbia, April 30, 2021 (GLOBE NEWSWIRE) -- Major Precious Metals Corp. (“Major Precious Metals” or the “Company”) (CSE:SIZE | OTC:SIZYF | FRANKFURT:3EZ) is pleased to provide an update on recent developments in Greenland with regards to exploration and mining activities and their potential impact on the Skaergaard Project (“Skaergaard”). The Company is in the process of planning a large diamond drilling program on its Skaergaard Project starting in late June to early July with further details to be released soon.
Recent election results in Greenland have resulted in a new coalition government that remains very supportive of exploration and mining development in the country. This has been evident with the recent conditional approval and full support of the Company’s exploration and drilling plans for Skaergaard by the Greenland Mineral Licencing and Safety Authority (“MLSA”). The Company has been working directly with the MLSA regarding its upcoming drilling plans and the feedback has been very positive with final approvals expected once the final drilling plans and associated documentation have been approved by MLSA staff.
International Funding for Greenland strategic or critical minerals projects
Greenland remains a stable, low-risk, and pro-mining jurisdiction with strong financial support from European and North American institutional banks and finance agencies, and Greenlandic and European government-backed organizations. Greenland is also strategically located with direct access to both the North American and European markets.
International mining companies with advanced projects in Greenland such as Ironbark Zinc Limited (“Ironbark”) and Bluejay Mining plc (“Bluejay”) have recently signed Letters of Intent (“LOI”) to obtain low interest debt financing with favourable loan terms from the Export-Import Bank of the United States (“EXIM”) to provide the necessary capital to advance their mining projects through the bankable feasibility stage. EXIM is the official export credit agency of the United States and is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services.
Ironbark announced on November 2, 2020 that it had received an LOI from EXIM for the provisional sum of US$216 million in debt financing for its Citronen Zinc-Lead Project located in northern Greenland. Ironbark can select either a Guaranteed or Direct Loan. The interest rate for the Direct Loan option is set at the Commercial Interest Reference Rate (“CIRR”). The CIRR is the official lending rate of export credit agencies. The current CIRR for transactions with a repayment period of 8.5 years is 1.46%. Bluejay announced on February 15, 2021 that it had received a Letter of Interest ("LOI") from EXIM for the provisional sum of US$208 million in debt financing under similar terms for their Dundas Ilmenite Project (titanium dioxide) located in northwest Greenland.
As of today, Ironbark have proceeded with the EXIM loan process. Bluejay continue to explore the EXIM eligibility requirements and have also advanced discussions with European Export Credit Agencies as well as other traditional commercial lenders to ensure the highest quality and most favourable commercial terms available for the development of their Dundas Project.
EXIM has been strategically investing in Greenlandic mining projects due the abundance of strategic or critical minerals within some of the largest undeveloped mineral deposits in the world. These strategic and critical minerals include zinc-lead-copper, platinum group metals (palladium and platinum), titanium, vanadium, gallium, rare earth elements (REE), and many others that are commonly found throughout Greenland. These commodities qualify as critical minerals as they have been deemed essential to the economic and national security of the United States (source: US Department of the Interior – May 18, 2018 press release).
The Skaergaard Project contains several of these critical metals in large quantities such as palladium and platinum, as well as vanadium, titanium and gallium. As Major Precious Metals develops the Skaergaard Project over the coming months it could be well-positioned to capitalize on these sources of funding from European and United States export credit agencies to advance the project through the mining feasibility stage in a fashion that utilizes strategic capital in a non-dilutive way for shareholders, as well as supporting the economics of the project itself.
Qualified Person Statement
All scientific and technical information contained in this news release was prepared and approved by Paul Ténière, P.Geo., President & CEO of Major Precious Metals Corp, who is a Qualified Person as defined in NI 43-101.
On behalf of the Board of Directors
MAJOR PRECIOUS METALS CORP.
Paul Ténière, M.Sc., P.Geo.
President and CEO
Suite 810 - 789 West Pender Street
Vancouver, BC V6C 1H2
Ph: (604) 687-2038
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About Major Precious Metals Corp.
Major Precious Metals is a Canadian junior mining and exploration company based in Vancouver, BC that owns a diversified portfolio of exploration properties within some of the most promising precious and base metal deposits worldwide. Major Precious Metals is also engaged in the business of acquiring and exploring precious metal projects near or adjacent to existing mining operations controlled by well-established mining companies.
Major Precious Metals is listed on the Canadian Securities Exchange (“CSE”) and its common shares trade under the ticker symbol "SIZE." Additional information relating to Major Precious Metals is available at www.majorprecious.com and SEDAR at www.sedar.com.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.
Forward-looking Information Statement
This news release may contain certain “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian and United States securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the development of a mineral resource estimate for the Skaergaard Project, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.