Ironbark Zinc (ASX:IBG) spent the bulk of 2022 ironing out the main details for its flagship Citronen Zinc-Lead Project in northern Greenland, which represents one of the world’s largest undeveloped zinc-lead resources.
Capitalising on having its flagship project in such an underexplored, mineral-rich island with a competitive licensing framework, stable political environment, low investment risk, and pro-mining government, Ironbark Zinc spent much of the year on its way to becoming a large global zinc producer.
In 2022, there has been major geopolitical upheavals that have substantially affected metal, as well as debt and equity markets, created uncertainty for large new project developments and helped spur global inflation rates to multi-decade highs. Throughout all of this zinc has continued to demonstrate its importance to the industrial activity of both today and tomorrow with the price holding above Ironbark’s 2021 BFS price of US$1.30/lb for the entirety of the past 12 months.
Ironbark Zinc hits the ground running early in 2022
The first quarter was particularly busy for Ironbark Zinc. Highlights included that following US EXIM Bank Preliminary Approval for up to US$657 million in debt funding in December 2021, phase two financial and legal due diligence commenced during the quarter following face to face meetings with senior US EXIM staff in London, UK in March 2022.
Technical, marketing, environmental and shipping advisors commenced work in Q2 2022.
Also, in Q2, work continued on assessing dual offshore listing structures at a reduced intensity given largely closed IPO markets offshore in the early months of the year.
Ironbark also had $2.92 million cash at hand as of 30 June 2022.
in the June quarter the company had further face to face meetings in Washington between Ironbark, EXIM, and its advisors
To round out the first half of 2022, in the June quarter the company had further face to face meetings in Washington between Ironbark, EXIM, and its advisors. Draft technical and ESG due diligence reports were completed in the quarter with discussion of the findings ongoing, and preparation was completed for EXIM’s second Transaction Review Committee (TRC 2) meeting which took place in July 2022.
2H 2022 packed with works and partnership engagement
For Q3 2022, the follow up US EXIM Bank 2022 site visit was successfully completed in July and negotiations continued on a cornerstone debt package for the Citronen Project. Principals from Norway-based Arctic specialist Leonhard Nilsen & Sønne (LNS) – Ironbark’s prospective equity and operating partner at Citronen – also attended the site visit.
By October, Ironbark Zinc completed a ‘very strongly supported’ capital raise with $1.5 million in firm commitments received for the issue of just over 142.85 million fully paid ordinary shares at $0.0105 per share.
As the Citronen project is quite the beast, Ironbark Zinc will remain busy in 2023.
The size of the opportunity offered by Citronen is why the company has been so persistent in pursuing the current strategy that prioritises the US EXIM opportunity, which it notes is the most likely one of the pathways currently available that will see full value recognition for the asset.
Write to Adam Orlando at Mining.com.au
