Ironbark Zinc Limited (ASX:IBG) substantial shareholders Toronga Pty Ltd and Dulyne Pty Ltd have increased their combined interest to 13.32% from 11.27%.
The investors, which share a common director, have recently purchased 14.5 million shares and at May 8 held a total of 94.5 million shares.
At that date Toronga held 57 million shares and Dulyne 37.5 million.
The base metals explorer and pre-developer has projects in Greenland and in New South Wales.
Seeking to secure finance
At its flagship Citronen Zinc and Lead Project in southern Greenland the company is working hard to secure finance to develop the project.
Ironbark is pursuing long-term debt provided by major international banks, private equity financing and export credit agencies with a debt target of US$300 million.
The company is working with several groups interested in forming part of the financing package with the possibility of additional streaming financing.
Equipment financing has potential to provide about US$150 million towards the total financing package.
Citronen’s inventory consists of 45 million tonnes grading 5.3% zinc and 0.5% lead found within a 70 million tonnes resource grading 5.1% zinc and 0.5% lead.
A higher grade 29.9-million-tonne resource grades 7.1% zinc.
Germanium also present
The treasured semiconductor germanium is also found at the project, which has an approved mining licence, but is not included in the resource.
A September 2017 feasibility study modelled a 14-year mine producing 180,000 tonnes a year of zinc and 25,000 tonnes a year of lead for the first five years of the mine.
Net present value (NPV) was put at US$1.034 billion (US$909 million after tax) and its internal rate of return (IRR) at 36% (35% after tax).
The study’s US$514 million capital cost estimate averages out to US66 cents for each pound of zinc produced from Citronen’s mining inventory.
At the Captains Flat Base Metal Project in NSW a HeliSAM electromagnetic (EM) survey over the large Jerangle prospect identified anomalies in several adjacent loops indicating the presence of a large bedrock anomaly.
Interpretation of the data is ongoing with a final report with drill targets expected shortly.