Ironbark Zinc Ltd (ASX:IBG) has completed a “strongly supported” capital raise, garnering A$1.5 million in firm commitments through the issue of 142,857,143 fully paid ordinary shares at A$0.0105 per share.
The placement price was at a 25% discount to the 15-day volume-weighted average price (VWAP) to close of trade on Friday, October 21, 2022, of A$0.014.
A one-for-four attaching option will also be issued with a strike price of A$0.022 and a three-year expiry.
Pending the successful completion of the placement, Ironbark will have 1,449,959,566 shares on issue.
The placement, led by leading Melbourne boutique Peak Asset Management, is in a single tranche and is anticipated to settle on Monday, October 31, 2022.
Funds for Greenland zinc-lead project
Funding is now in place for Ironbark to:
- continue its project financing-related activities at its potentially globally significant Citronen Zinc-Lead Project in Greenland; and
- kick off fieldwork at the Fiery Creek Copper-Gold Project in New South Wales.
IBG managing director Michael Jardine said: “On behalf of the board I would like to first thank our existing shareholders who participated in the placement, as well as extending a warm welcome to the new shareholders who have just joined the register.
“The business is looking ahead to what will be another busy 12 months and we have now a funding pathway in place that will allow for those activities to continue.
Shortage of zinc
“In Citronen the company has a fantastic asset, truly tier one in scale, and the board believes strongly in its potential in the medium term given we expect the world will be short zinc metal.
“In the nearer term, we see price upside from current levels as refined metal capacity comes offline, particularly in Europe.
“Our relationship with EXIM Bank as the potential cornerstone debt funder of Citronen is unique in the small-cap space and it continues to develop positively over time.
“Likewise, the opportunity Ironbark has carved out with LNS A/S in Norway continues to develop and is something we are firmly focused on given their outstanding operational capabilities in the Arctic.
Fiery Creek fieldwork
“Finally, this placement will allow for some field work to be done at Fiery Creek for the first time in a long time. There are plenty of high-grade results to follow up on and site access is not subject to the same seasonality impacts experienced in Greenland.
“Generating newsflow from Australia presents only upside for Ironbark and will be a focus for the company in the short term.”