Arkle Resources PLC (LON:ARK) saw its shares more than double in value on Friday, rising 104% to 1.12p, after the company’s joint venture partner at the Stonepark zinc project, Canadian firm Group Eleven Resources Ltd. (CVE:ZNG) secured funding from mining giant and near neighbour Glencore (LON:GLEN).
This follows an investment by Glencore in Group Eleven in October 2019, of which a portion was covenanted to be spent on the project.
Arkle is maintaining its 23.44% stake in the project.
"We believe this transaction is a strong endorsement of the project,” Arkle’s chief executive Patrick Cullen said in a statement.
“It is established that the Stonepark deposit, while smaller, is higher grade and lies at shallower depths than Glencore's adjacent Pallas Green deposit. We also believe that there is interest in the exploration potential in the south of the project, where the Kilteely hole intersected the outer margin of potential new Irish-Type zinc system. As recently announced, we look forward drilling recommencing in August subject to (coronavirus) COVID-19 restrictions," he added.
Stonepark contains a maiden inferred resource totalling 5.1mln tonnes at 11.3% zinc and lead combined. The project lies adjacent to Glencore's Pallas Green deposit which contains 45.4mln tonnes at 8% zinc and lead combined.