Ironbark Zinc has lined up a $US50 million funding facility with international commodities trading house Glencore International to fund its strategy of growth and diversification through acquisition.
The Perth-based zinc exploration and development firm announced today it had entered a $US50 million convertible note funding facility at a significant premium to Ironbark’s current share price of 31 cents (as of 9:40AM WST)
The funds will be delivered in two tranches; $US30 million at $0.42 per share; and $US20 million at $0.50 per share.
The deal remains subject to shareholder approval at a general meeting scheduled for November.
Hartleys acted as Ironbark’s corporate advisor with respect to the facility.
Ironbark said the funds would enable it to pursue growth opportunities in line with its strategy of becoming an internationally-significant base metals miner.
“This may involve acquiring assets or companies that have base metal assets in jurisdictions where Ironbark does not currently operate, which would provide Ironbark with diversification by operation, commodity and geography,” the company said in a statement to the Australian Securities Exchange.
“Ironbark considers that such diversification has the potential to deliver significant net benefits to (the company).”
Ironbark’s flagship project is the Citronen base metals development in Greenland. The company said the current JORC compliant resource at Citronen is 60 million tonnes at 6 per cent zinc and lead.
