Ironbark Zinc s mine camp at the Citronen project in Greenland.
Ironbark Zinc's mine camp at the Citronen project in Greenland.

Ironbark Zinc has announced a $2.5 million capital raising for development works at its Citronen zinc project in Greenland.

The placement by way of a bookbuild will involve the issue of 28 million new shares priced at a discounted nine cents a share.

Managing director Jonathan Downes said the placement was more than four times oversubscribed, reflecting the strong support for Ironbark and its Citronen zinc project.

"We have taken a disciplined approach to restrict the size of the raising to minimise dilution to our shareholders, due to our firm view that zinc prices will continue to increase in the face of a looming zinc supply shortage as major global zinc mines are scheduled to close, and as we continue to progress our Citronen Project over the coming period," he said.

"Global zinc stockpiles have continued to fall and zinc prices have continued to rise."

Mr Downes said Ironbark was uniquely positioned to take advantage of a stronger zinc market as the 100 per cent owner of one of the world's largest undeveloped zinc mines.

"We look forward to making significant progress on permitting and development as we progress the project to the next stage," he said.

Ironbark shares were steady at 10.5 cents at 12.35pm.

The West Australian

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