After 17 years and significant investment, Ironbark Zinc has sold its Citronen zinc-lead project in Greenland to Dubai-based Almeera Ventures for $1.4 million. The sale ends Ironbark's long-held pursuit of developing the remote project.
After 17 years and spending north of A$100 million to pursue its dream of developing the massive but remote Citronen zinc-lead project in Greenland , Ironbark Zinc has let the project go for what essentially amounts to pocket change.Dubai-based Almeera Ventures is getting a bargain by paying an all-cash gross consideration of just $1.4 million for a resource that now stands at 84.7 million tonnes grading 4.7% zinc and 0.5% lead, plus an exploration target of a similar scale.
When Ironbark (then known as Ironbark Gold) purchased the project for around $9 million in cash and shares in 2007, Citronen had a resource of 16.8Mt at 7.8% zinc and 0.9% lead.Over the years, Ironbark raised more than $100 million from investors and secured US$50 million in convertible notes from Glencore, but the challenges of funding a development in the Artic Circle ultimately provided too much for the ASX-listed junior.The sale to Almeera 'provides a fresh foundation for the incoming leadership team', the company said this morning.Divesting the company's raison d'etre after so long will no doubt come as a bitter blow to long-term investors, who won't even see the promise of a royalty dangled in front of them.Almeera will pay a $50,000 non-refundable deposit and has four months to run due diligence. Another $950,000 will be paid on completion, and $400,000 within six months. The group will also pay around $930,000 to cover potential rehabilitation costs for the Citronen project exploration camp.Conditions include all required regulatory and third-party approvals and a four-year renewal of the Citronen licence.If the name Almeera is familiar: in 2020, it teamed up with AIM-listed Empire Metals in an attempt to buy a stake in the Munni Munni platinum project in WA's Pilbara without succes
Mining Zinc Lead Greenland Project Sale
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