Ironbark Zinc (ASX:IBG) is acquiring a package of projects in Brazil considered prospective for lithium, rare earths and niobium.
The junior explorer has agreed to buy Perseverance Lithium, which owns seven projects collectively known as the Perseverance Project in the northeastern Minas Gerais region of Brazil, for $100,000.
Ironbark says the project is located in the geological extensions of the Lithium Valley, a politically defined area including the towns of Salinas and Araçuaí that sit adjacent to the mines and JORC/NI 43-101 compliant resources of CBL, Sigma Lithium (TSX-V:SGML) and Latin Resources (ASX:LRS).
The Perseverance Project comprises 27 tenements spanning 52,000 hectares.
This latest acquisition comes close on the heels of the deal to acquire the Simon-Anderson copper projects in Mt Isa, Queensland.
The acquisitions are part of Ironbark’s continued pivot away from zinc in Greenland.
Managing Director Michael Jardine says Perseverance provides the company with “enormous exposure to one of the hottest hard rock lithium neighbourhoods in the world” at a very low cost.
“Brazil is a very well-established mining jurisdiction and, in my opinion, significantly improves our overall sovereign risk profile,” he says.
“Perseverance is very early stage but we look forward to exploring what’s a vast and promising land holding in Brazil’s Lithium Valley.”
Numerous artisanal mines exist within the tenements.
Ironbark is now preparing to start exploration.
To fund the acquisition, Ironbark is undertaking $715,000 two-tranche placement comprising the issue of 178.7 million shares at $0.004 each.
The company says it has received firm commitments for the raising which includes the issue of a one-for-one free attaching option, exercisable at $0.022 before 7 November 2025.
The cash raised will also go towards initial exploration at Perseverance and the Mt Isa projects.
Jardine says the geological team has already completed a positive maiden reconnaissance trip to the Mt
Isa projects and will have further news regarding its our plans for Simon-Anderson in the short term.
Peak Asset Management led the capital raising.
Write to Angela East at Mining.com.au
Images: Ironbark Zinc & Stock
