Ironbark Zinc Limited (ASX:IBG) has completed a book build for a placement of more than 71.4 million shares to institutional and sophisticated professional investors.
The placement will raise up to $2 million at an issue price of 2.8 cents a share.
Funds raised in the placement will be primarily used to advance financing and development of Ironbark’s Citronen Zinc Project in Greenland, as well as for general working capital.
Australia-based financial services firms Patersons Securities Ltd and Petra Capital Pty Ltd acted as joint lead managers to the placement.
Ironbark managing director Jonathan Downes said the company was delighted with the support received for the placement.
He said: “The project represents one of the largest global zinc resources and remains open to further mineralisation in almost every direction.
“The project is permitted for production and supported by a feasibility study and we are making solid progress as the company progresses towards financing.
“The development of Citronen coincides with critically-low levels of zinc stocks available for purchase in warehouses and a strong zinc price.”
Ironbark’s September 2017 feasibility study for Citronen targeted a 14-year mine life where 180,000 tonnes a year of zinc and 25,000 tonnes per annum lead would be produced for the first five years.
The deposit has a mineral resource estimate of 70 million tonnes grading at 5.1% zinc and 0.5% lead.
The company’s resource is large and could see it become one of the top five zinc producers in the world.
The largest smelting house in the world, Switzerland-based Nyrstar NV (OTCMKTS:NYRSF), is Ironbark’s largest shareholder, and is joined on the register by the world’s largest zinc miner and marketer Glencore PLC (LON:GLEN).