THE BOURSE WHISPERER: Shareholders of Greenland-focused Ironbark Zinc have approved a US$50 million convertible note funding facility and offtake facility with a wholly-owned subsidiary of Glencore International AG.
Ironbark said the transaction is an exciting progression in the development of the company in that it complements the work Ironbark is undertaking to advance its Citronen base metals project in Greenland to production.
Citronen currently hosts in excess of 11 billion pounds of zinc and lead.
The current JORC compliant resource for Citronen. Source: Company announcement
The company said it anticipates the facility will place it in a strong position to build a leading international base metals company at a time when Ironbark believes considerable external growth opportunities exist.
The company highlighted the proposed strengthening of its Board of Directors and support from major industry shareholders such as Glencore and Nyrstar NV, and technical expertise of project partner China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. (NFC).
Ironbark said these factors will combine with the new deal to provide it with the financial capacity and technical and commercial expertise to rapidly accelerate the company’s intent to build a leading international base metals company.
“I am delighted with the overwhelming support shown for the US$50m funding facility,” Ironbark Zinc managing director Jonathan Downes sadi in the company’s announcement to the Australian Securities Exchange.
“The current challenging market conditions make this unique funding facility very attractive, with conversion prices at 42 cents and 50 cents per share representing very attractive premiums to the current Ironbark share price.
“Our shareholders clearly understand that this is an important step for Ironbark in building a significant international base metals mining house which will complement the development of Ironbark’s globally significant Citronen project which is being progressed towards development in partnership with NFC.”