Ironbark Zinc (ASX: IBG) is continuing to progress its corporate growth strategy, supported by a US$50 million funding facility from Glencore International.
The company is reviewing acquisition opportunities that will rapidly enhance the value of the funding facility.
Ironbark is working towards becoming a base metal mining house, and Glencore’s funding facility has been provided for the purpose of pursuing acquisition opportunities to realise this goal.
Given the current challenging market conditions, Ironbark said there are a number of excellent opportunities available which the company is considering.
Ironbark’s existing projects include the wholly owned Citronen base metal project, which hosts more than 13.1 billion bounds of zinc and lead.
Citronen has a total resource of 70.8 million tonnes at 5.1% zinc and 0.5% lead.
With several large zinc mines to be depleted in coming years, creating a shortfall in supply, zinc prices are expected to rise. This stands to make the development of new mines such as Citronen “very compelling”.
In April this year, Ironbark delivered positive optimisation studies for Citronen, showing an increase of more than 15% in mill feed and a longer mine life.
This inspired a broker’s report which placed a 12 month price target of A$0.41 on Ironbark, more than double the company’s current price of A$0.16.
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