Glencore ups stake in Ireland-based Group Eleven to expand its zinc portfolio. Glencore owns the Pallas Green project in Ireland which is adjacent to Group Eleven’s Stonepark zinc deposit.
Glencore’s Pallas Green deposit hosts an estimated mineral resource of 45.4mn mt of 7pc zinc and 1pc lead, while Group Eleven’s Stonepark holds 5.1mn mt 8.7pc grade zinc and 2.6pc lead.
Glencore will invest CAD750,000 ($532,760) to purchase 15mn units of Group Eleven at CAD0.05 per unit in two tranches. The first tranche investment of CAD110,000 is expected to close by May 21, 2020 and the remaining by late June. This investment will increase Glencore’s stake in Group Eleven from 11.6pc to 14.2pc after the first tranche and 20pc post the second tranche. The deal is subject to shareholder and regulatory approvals.
Group Eleven plans to use CAD500,000 of the gross proceeds for general corporate purposes and the rest for exploration on its zinc projects in Ireland. Group Eleven plans to use CAD500,000 of the gross proceeds for general corporate purposes and the rest for exploration on its zinc projects in Ireland.
The Stonepark project is a joint venture between Group Eleven’s and Arkle Resources, with Group Eleven holding 76.56pc interest. Group Eleven hold 100pc interest in the adjacent PG West Project. The region holds large undeveloped zinc deposits.
($1= CAD1.41)