- Ironbark Zinc (IBG) raises $4 million from a share placement to fund the planned due diligence needed to progress its Citronen project
- IBG recently received a preliminary project letter (PPL) from US EXIM Bank outlining its intention to fund the ASX-listers zinc-lead project in Greenland
- Progressing the PPL is subject to due diligence, with Ironbark to pick up the tab for all the costs involved using the new $4 million placement
- The capital raise will see more than 90 million new share issued at 4.4 cents each – a two per cent discount to the company’s five day volume weighted average price
- IBG shares have soared after resuming trade from a temporary suspension, related to the fundraise, and are up 21.3 per cent at 5.7 cents
Ironbark Zinc (IBG) has raised $4 million from a share placement to fund the planned due diligence needed to progress its Citronen project.
The materials stock announce the capital raise on Friday morning, coming out of a temporary trade suspension related to the fundraise.
The placement comes after IBG recently received a preliminary project letter (PPL) from US EXIM Bank outlining its intention to fund Ironbark’s zinc-lead project in Greenland.
In order to progress the PPL, due diligence is required to be carried out and IBG is on the line to pick up the tab for all the costs involved.
Under the ASX-lister’s $4 million placement, more than 90 million new IBG shares will be issued at 4.4 cents each.
That price represents a two per cent discount to the company’s five-day volume-weighted average price (VWAP) and a one per cent premium to the 10-day VWAP.
Ironbark said today’s fundraising was well-supported by investors, with the placement expected to settle by December 16.
Managing Director Michael Jardine added has thanked everyone involved for their support.
“Ironbark is now closing 2021 in an excellent position with an EXIM PPL in hand and funding in place to further advance our key value drivers early in 2022,” he said.
“There was huge demand bid into the book yesterday, in a strong validation of the company’s now advanced financing strategy to get Citronen into production.
“I am pleased to see certain of our larger existing shareholders add to their position, including IBGs largest shareholder in UK based Bennelong Resource Capital, as well as
welcoming several new institutional shareholders to the register.”
Ironbark Zinc has soared since resuming trade, up over 40 per cent in morning trade, and still trading 21.3 per cent in the green at 5.7 cents each at 11:42 am AEDT.