Ironbank Gold up on zinc deal

SHARES in mineral explorer Ironbark Gold Ltd rocketed higher last week after it agreed to acquire a zinc project in Greenland in a cash and scrip deal worth more than $20 million. It will purchase the Citronen zinc project, which has an estimated resource of 17 million tons at 8.3 per cent zinc equivalent. Ironbark technical director Adrian Byass said the project was underexplored and provided a “rare level of exceptional exploration potential”. The company has engaged SRK Consulting to assist in the due diligence process and work with Ironbark to develop an exploration program. Ironbark will pay $6 million in cash and issue eight million shares. It will also issue 16 million Ironbark options with an exercise price of $1.50. Ironbark shares had been trading at $1.85 prior to the announcement and rocketed to $2.70 immediately after.