Mine development in focus as Zinc of Ireland secures cornerstone investor

By Meagan Evans. Published at Jan 29, 2019, in Mining

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."

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!