JOHANNESBURG (miningweekly.com) – ASX-listed Ironbark Zinc has completed a book build for a placement to institutional and sophisticated professional investors to raise up to $6-million at an issue price of $0.062 apiece.
The placement will include the issue of up to 96.77-million new shares, pursuant to the company's capacity.
Settlement of the placement is scheduled to occur on January 30.
Ironbark reported on Wednesday that there was strong demand for the placement, which reflected the market interest in the development of the Citronen zinc/lead project, in northern Greenland.
The funds raised will be used primarily to fund the further development of Citronen and to advance financing, as well as for general working capital.
The company said in September that it would appoint a financing adviser to assist with establishing a debt facility to fund the construction of the project. It is also working with China NonFerrous under an existing memorandum of understanding to deliver an engineering, procurement and construction fixed price contract, and to assist with project financing.
Ironbark last year updated the feasibility study for the project, which estimated that a capital investment of $514-million will be required to support a 3.3-million-tonne-a-year operation.
"The grant of the mining permit and the recent lodgment of the feasibility study coincides with a period of growing tightness in global zinc supply and demand dynamics and an ongoing rise in the zinc price," stated MD Jonathan Downes.