Mine development in focus as Zinc of Ireland secures cornerstone investor
After emerging from a trading halt this morning, Zinc of Ireland NL (ASX:ZMI) reported that Dundee Resources Limited, a subsidiary of Canadian based Dundee Corporation (TSX:DC.A), has become its cornerstone shareholder with 19.9% shareholding.
ZMI has successfully completed a placement to Dundee, raising A$2.425 million at $0.005 per share — an encouraging 25% premium to the market price.
On completion of the placement, ZMI will have cash of approximately A$4.6 million. The funds will support ZMI to accelerate its exploration programs, with a focus on the Kildare Zinc Project in Ireland. Ongoing studies in relation to ZMI’s resources and other technical and development studies will also be accelerated.
Ireland is the world’s richest zinc real estate in tonnes of zinc per square kilometre, and hosts a number of large, high-grade zinc mines, including Navan, Lisheen, Galmoy and Tynagh. It's also a mining-friendly jurisdiction with stable government, excellent infrastructure and skilled labour.
All of this looks to work in ZMI's favour. The company is working to establish a significant zinc project at Kildare by leveraging the region's exploration upside, including similarities to other well-recognised Irish-type zinc projects.
The introduction of Dundee as a cornerstone investor, meawhile, further strengthens ZMI’s share registry, with its top two holders, in addition to board and related parties, now holding in excess of 40% of the company's shares. In connection with the placement, respected mining executive, Adrian Goldstone, has been appointed as a Non-Executive Director of ZMI.
Goldstone has in excess of 35 years’ experience in technical and environmental disciplines within senior project and corporate management roles. He was the executive responsible for Dundee Precious Metals' major projects in Europe and Africa, including oversight of large capital project management, sustainable business development, environment and CSR management, permitting and compliance, key relationship management at central and local government, and operational health and safety.
ZMI Executive Director, Patrick Corr, said:
“We are delighted to welcome Dundee into ZMI as our cornerstone investor. Dundee’s investment represents a strong endorsement of our Kildare zinc project and our team.
“We also welcome the in-house knowledge and expertise that the Dundee Goodman Merchant Partners (DGMP) team bring to the table. DGMP is a division of Goodman & Company, Investment Counsel Inc. (GCIC), a wholly-owned subsidiary of Dundee. DGMP finances and provides M&A advice to mining companies through all phases of their development cycle. The DGMP team has a respected corporate finance team with deep technical backgrounds in engineering and geology.
"With a strong history of development and mining in Europe, the support and know-how of the DGMP team is exactly what we need as we pursue ZMI’s vision of advancing the Kildare project.
"Cash at bank following the placement is approximately A$4.6 million and we are fully funded to accelerate exploration and development studies centred around the Kildare project," Corr added. "Naturally, the emphasis will be on adding high-grade resources concurrently with better understanding the potential economics of the project."