- Exploration company Ironbark Zinc (IBG) has successfully executed the buyback of the Citronen life of mine production royalty in Greenland
- The life of mine 2.5 per cent net smelter return royalty has been extinguished in full
- Ironbark will pay $316,000 cash and 122 million fully paid ordinary shares to Pearyland Royalties, to extinguish the royalty
- The company expects that newly available royalty cashflow will help support development of the Citronen Project
- Ironbark Zinc is up 6.25 per cent and trading at 3.4 cents per share
Exploration company Ironbark Zinc (IBG) has successfully executed the buyback of the Citronen life of mine production royalty.
The company’s 100 per cent-owned Citronen Project is an advanced zinc-lead development in northern Greenland.
Ironbark has now extinguished the project’s Life of Mine 2.5 per cent net smelter return (NSR) royalty in full.
In exchange for extinguishing this royalty, the company agreed to pay $316,000 cash and 122 million fully paid ordinary shares to Pearyland Royalties. $50,000 of the cash payment will be paid as a non-refundable deposit.
Ironbark’s Managing Director, Michael Jardine, called the buyback a transformational step forward in converting Citronen from opportunity to reality.
“With the royalty cashflows now available to support project development, the updated 2021 bankable feasibility study (BFS) will for the first time reflect the genuine underlying value of this highly strategic assets,” he said.
“The potential for Citronen to become the next major greenfield zinc mine development is clearly demonstrated by the high quality of Ironbark’s shareholder base, the recent support of U.K.-based Bacchus Capital, and the encouraging dialogue established with the US Government-backed EXIM Bank, culminating in the recently announced EXIM financing memorandum of understanding (MoU),” he added.
The parties have agreed to a due diligence period, lasting for the two weeks following the signing of the terms sheet. A final settlement date is expected no later than 30 days after the signing.
If the royalty buyback goes through, the number of Ironbark shares currently on issue will increase from 940,552,114 to 1,062,552,114.
Ironbark Zinc is up 6.25 per cent, trading at 3.4 cents per share at 1:38 pm AEDT.