Ironbark Zinc Ltd (ASX:IBG) has set itself up well to advance the Citronen Project in Greenland towards development and into production through a strongly supported placement that realised A$4 million.
Firm commitments have been received for the issue of 90,909,091 fully paid ordinary shares at A$0.044 per share.
Funding is now in place to proceed with post-PPL (Phase 2) Due Diligence with US EXIM and advance the Citronen Project strategic equity process.
“In an excellent position”
IBG managing director Michael Jardine said: “Ironbark is now closing 2021 in an excellent position with an EXIM PPL in hand and funding in place to further advance our key value drivers early in 2022.
"There was huge demand bid into the book yesterday, in a strong validation of the company’s now advanced financing strategy to get Citronen into production.”
Discount to VWAP
The placement price was at a 2% discount to the 5-day VWAP to close of trade on Monday, December 6, a 1% premium to the 10-day VWAP and a 5% premium to the 20-day VWAP.
This placement is in a single tranche, from existing 7.1 placement capacity, and will settle on Thursday, December 16, 2021. Quotation of the shares is expected to take place on December 17.
“Timing important”
"I am pleased to see certain of our larger existing shareholders add to their position, including IBGs largest shareholder in UK based Bennelong Resource Capital, as well as welcoming several new institutional shareholders to the register,” Jardine said.
"The timing of this raise, with the holiday season looming, was important in giving the business certainty to proceed at pace in converting the opportunities we have in front of us, and I look forward to updating shareholders with further progress in the New Year.”
Use of funds
Proceeds of the placement will be used for Phase 2 due diligence with US EXIM, whereby Ironbark is responsible for funding both its own and EXIMs costs, to fund the upcoming strategic equity process and for general working capital purposes.
Placement shares will fall within the company’s placement capacity under ASX Listing Rule 7.1, and the placement shares issued will rank equally with Ironbark’s existing shares quoted on the ASX.
Pending the successful completion of the placement, Ironbark will have 1,299,687,446 shares on issue.
Morgans Corporate Limited acted as lead manager to the placement and Bacchus Capital Advisors acted as financial advisor to Ironbark.