Australian base metal focussed exploration and development company Ironbark Gold Limited (IBG) has reached a significant milestone in the development of its wholly owned Citronen lead/zinc project in northern Greenland through the execution of a significant equity/ off-take agreement with Nyrstar NV, the world’s largest zinc metal producer and one of the world’s largest primary lead smelting and refining companies.
Under the terms of the binding agreement Ironbark has agreed to a two tranche placement that once completed will see Nyrstar hold 19.9% of the issued capital in Ironbark. Combined the placement to Nyrstar will see Ironbark issue 52,843,559 new shares and raise A$6.6M, with the funds raised to be applied to towards the completion of a Bankable Feasibility Study (BFS) at Citronen. Ironbark has also granted Nyrstar a life of mine off-take agreement in relation to 35% of the production from the Citronen deposit, once commercial production commences which, depending on market conditions, could be achieved in the next 3 to 5 years. Ironbark is dedicated to developing a major base metal mining operation at the wholly owned Citronen project and considers that this strategic agreement with Nyrstar will prove to be a major development in the Company’s production plans.
“The Citronen project represents one of the world’s largest undeveloped zinc resources and to have Nyrstar, the world’s largest zinc metal producer and one of the world’s largest primary lead smelting and refining companies, supporting us in the development of this project is a significant boost for our plans moving forward,” Ironbark Managing Director Jonathan Downes said. “Not only has Nyrstar made a significant financial investment into Ironbark, but they have also confirmed our development plans for Citronen through the signing of a life of mine off-take for 35% of the production from the deposit. ”