Ironbark to raise $2.5m for Citronen

Subiaco-based gold and metal base explorer Ironbark Zinc has announced a $2.5 million capital raising for permitting and pre-development works at its Citronen zinc project in Greenland. 

Ironbark said the placement would be undertaken in one tranche of up to 28 million shares, valued at 9 cents per share.

“We have taken a disciplined approach to restrict the size of the raising to minimise dilution to our shareholders, due to our firm view that zinc prices will continue to increase in the face of a looming zinc supply shortage as major global zinc mines are scheduled to close, and as we continue to progress our Citronen project over the coming period,” Ironbark managing director Jonathan Downes said.

He said the placement was more than four times over subscribed. 

“Global zinc stockpiles have continued to fall and zinc prices have continued to rise,” Mr Downes said.

“Ironbark is uniquely positioned to take advantage of a stronger zinc market with its advanced and large scale Citronen project and strategic partners China Nonferrous, Nyrstar and Glencore.” 

Ironbark shares exited a trading halt at 10.5 cents per share at 1:20pm.