31/03/2010 - 08:45

Ironbark surges on Nyrstar $15m deal

31/03/2010 - 08:45

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Shares in Ironbark Zinc surged higher after major shareholder Nyrstar lifted its interest to more than 30 per cent by subscribing to $15 million worth of securities.

Ironbark surges on Nyrstar $15m deal

Shares in Ironbark Zinc surged higher after major shareholder Nyrstar lifted its interest to more than 30 per cent by subscribing to $15 million worth of securities.

Ironbark said it had executed a deal to issue Belgium's Nyrstar 42.8 million shares at a premium of 35 cents each to raise the funds, which will be used to complete the definitive feasibility study for the Citronen zinc-lead deposit in Northern Greenland.

The private placement will increase Nyrstar's shareholding in Ironbark from 11 per cent to 31 per cent.

Shares in Ironbark doubled to a high of 30c this morning before easing to 24c at 11:18 AEST, a gain of nine cents or 60 per cent.

"We believe the Citronen zinc-lead deposit has the potential to become a globally significant zinc mine, likely to be in production at a time when other significant mines are depleted and well positioned to supply European and other global zinc and lead smelters," Nyrstar chief executive Roland Junck said.

The Ironbark placement comes a fortnight after CBH Resources rejected Nystar's takeover offer in favour of Japan's Toho Zinc Co's bid for a 49.9 per cent stake in the miner.

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