Glencore lifts stake in Ironbark to 19.8%

Global commodities supplier Glencore International AG has become the largest shareholder in Subiaco-based zinc and base metals explorer Ironbark Ltd.

Glencore now has a 19.8 per cent stake in the company, up from 19 per cent, after subscribing to a placement of 459,711 shares at an issue price of 71 cents.

Glencore acquired around 29.1 million Ironbark shares at 71 cents off-market last month, taking its holding from just over 6 per cent to around 19 per cent at the time.

Ironbark's principal project is the 100 per cent-owned Citronen Zinc Project in Greenland, which was recently upgraded to 72.5 Mt @ 4.2 per cent zinc and 0.5 per cent lead from a previously reported smaller and higher grade inferred resource of 16.8 Mt @ 7.8 per cent zinc and 0.9 per cent lead.

The resource is JORC and National Instrument 43-101 compliant with the majority of the resource now in the indicated category.

While the company considers that the reported resource may represent only part of a larger system, the current resource is considered to have compelling development potential that warrants immediate evaluation in its own right.

Ironbark is working with Ausenco on advancing the Citronen Zinc Project with the purpose of developing a major zinc mining operation.

The pre feasibility study is scheduled for completion in the second half of 2008.

Ironbark shares ended the day 3 cents, or 6.12 per cent, higher to 52 cents each.