- Ironbark Zinc (IBG) has received firm commitments to raise $3 million through its recently completed capital raise
- The company will issue 125 million shares to investors at 2.4 cents each in two tranches
- Proceeds will support IBG as it moves towards a financial investment decision at its Citronen Project
- This includes completing the 2021 bankable feasibility study and underwriting the proposed EXIM bank loan process
- Ironbark Zinc is down 3.7 per cent and trading at 2.6 cents per share
Ironbark Zinc (IBG) has received firm commitments to raise $3 million through its recently completed capital raise.
The company’s capital raise was strongly supported by investors, with several new institutional shareholders joining the register.
Ironbark will issue 125 million shares to these investors at 2.4 cents each. The placement will occur in two tranches, with the majority of the shares being issued during the first tranche.
95,498,585 shares will be issued through the first tranche via the company’s existing placement capacity. The other 29,501,415 shares will be issued through the second tranche, although this is subject to shareholder approval.
The $3 million in proceeds will support IBG as it moves towards a financial investment decision at its Citronen Project in Greenland.
This includes completing a 2021 bankable feasibility study and underwriting the costs of the proposed EXIM bank loan process.
Ironbark Zinc’s Managing Director, Michael Jardine, said the board is pleased with the strong support received from the market during the capital raising.
“Direct project spend is now ramping up and further investment is required to optimise the goals in front of the business in 2021,” he said.
“This placement, conducted at an 80 per cent premium to the October 2019 raise, will maximise the opportunity for Ironbark to complete its BFS update in a timely manner and go on to apply to convert the EXIM letter of interest into a binding loan facility,” he added.
Ironbark Zinc expects to settle shares from the placement’s first tranche on March 15, 2021. Approval for tranche two will be sought at a general meeting slated for April 19, 2021.
Ironbark Zinc is down 3.7 per cent, trading at 2.6 cents per share at 11:31 am AEDT.