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Group Eleven gains Glencore backing for Ireland zinc projects

16th October 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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TSX-V-listed explorer Group Eleven has the backing of diversified miner and commodities trader Glencore to advance its zinc projects in Ireland.

Group Eleven’s Stonepark deposit, which comprises 5.1-million tonnes grading 8.7% zinc and 2.6% lead, is adjacent to Glencore’s Pallas Green project, which has a resource of 45.1-million tonnes of 7% zinc and 1% lead.

Glencore Canada will subscribe for 8.4-million Group Eleven units at C$0.12 each for gross proceeds of C$1-million. The transaction gives Glencore an equity ownership of 11.58%.

Glencore has the right to add one member to Group Eleven’s board of directors, provided that its equity ownership remains above 10% and it will also have representation on Group Eleven’s technical committee.

The major will also have certain rights covering Group Eleven’s zinc projects, including offtake rights to be priced and negotiated on market terms.

“Glencore’s extensive experience in Ireland, especially at the Pallas Green zinc project, will provide an important dimension to Group Eleven’s ‘Big Think’ strategy and should significantly enhance drill target definition and subsequent testing at Stonepark, Ballinalack and our other zinc projects,” says Group Eleven CEO Bart Jaworski.

Group Eleven will use at least 70% of the net proceeds of the offering to advance the exploration at its Stonepark project.

London-listed Arkle Resources has a 23.44% stake in Stonepark.

“As we have said in the recent interim report, there is significant interest in the Stonepark zinc project. The established resource is higher grade and lies at shallower depths than the adjacent Pallas Green deposit.

"The recently drilled 'Kilteely hole' intersected the outer margin of potential new Irish-Type zinc system and there is a compelling case for further deep drilling in that area. We look forward to further updates,” comments Arkle CEO Patrick Cullen.

Group Eleven's share price closed 20% higher in Vancouver on Tuesday and Arkle's stock traded 8% higher in London on Wednesday morning.

Edited by Creamer Media Reporter

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