Subiaco-based Ironbark Gold Ltd has announced plans to raise $25.7 million through a series of placements to finalise its acquisition of the Citronen zinc project and provide it with adequate working capital.
The company acquired the Greenland mine after spending $6 million in cash and issuing 8 million in shares and 16 million options to the Citronen owners.
The site, which has an estimated resource of 17 million tons at 8.3 per cent zinc equivalent, was expected to provide the company with a "rare level of exceptional exploration potential", according to Ironbark Technical Director Adrian Byass.
The full text of a company announcement is pasted below
Ironbark Gold Limited is pleased to report that, subject to shareholder approval, it has entered into subscription agreements with institutional, sophisticated and industry investors to issue 10,300,000 shares to raise $25.75 million at a price of $2.50 per share. These funds are considered adequate to conclude the purchase of the Citronen Zinc Project ($4,500,000 payment) and provide working capital to aggressively progress the Citronen Zinc Project towards a full feasibility study for a period of two years.
Ironbark has entered into a Heads of Agreement with Glencore International AG encompassing potential future funding, entering in an agency agreement to assist in marketing and the appointment of a non-executive Director to the Board of Ironbark.
Following the completion of this placement Merrill Lynch Equities (Australia) and Glencore International AG will become significant shareholders in Ironbark.
Further information regarding the placement and the purchase of the Citronen Zinc Project will be set out in a Notice of Meeting which will be forwarded to Ironbark shareholders shortly.
