Ironbark Zinc (ASX:IBG) reports it has completed a ‘very strongly supported’ capital raise with $1.5 million in firm commitments received for the issue of just over 142.85 million fully paid ordinary shares at $0.0105 per share.
The company notes the placement price was at a 25% discount to the 15-day VWAP to close of trade on 21 October 2022 of $0.014.
Melbourne-based boutique firm Peak Asset Management acted as lead manager to the capital raise. Under the terms of the firm’s mandate, Peak will receive a 6% capital raise fee on all funds it introduces and 6 million options on the same terms as the placement options.
Ironbark now has funding in place to continue its project financing related activities at its ‘potentially globally significant’ Citronen Zn-Pb Project in Greenland, as well as start field work at the Fiery Creek Cu-Au Project in NSW (EL 6925).
Addressing the capital raise, Ironbark Managing Director Michael Jardine commented: “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 twelve months and we have now a funding pathway in place that will allow for those activities to continue”
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.
In Citronen the company has a fantastic asset, truly tier 1 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.
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.”
Some 39,028,400 placement shares, 35,714,286 attaching placement options and 6 million advisor options will be issued.
The company is expected to settle the placement on 31 October 2022 and quotation of the placement shares is expected to take place on 1 November. Pending the completion of capital raise, Ironbark will have 1,449,959,566 shares on issue.
The options will be issued shortly after the anticipated settlement date and subscribers under the placement will be required to apply for the options under a separate prospectus.
Write to Adam Orlando at Mining.com.au
Images: Ironbark Zinc & iStock