ASX Release

Ironbark Zinc Limited (“Ironbark”, “the Company” or “IBG”) is pleased to update its shareholders with respect to the appointment of London based Bacchus Capital Advisers (“BCA”) to assist the Board with achieving a positive Final Investment Decision (“FID”) in 2021. 

Highlights 

• BCA, led by Peter Bacchus, has extensive experience in resource capital markets, including in the northern hemisphere, where Ironbark is expected to focus its FID process in 2021. Peter Bacchus has raised in excess of $15bn in public and private capital for the global natural resources sector, and completed some of the industry’s most transformational transactions 

• Mandate is for an initial 12-month period and BCA’s broad scope of work covers potential debt & equity raisings, M&A and takeover defence, considerations pertaining to potential project partners, and major commercial opportunities 

• The IBG Board believes that BCA is well positioned to assist the Company to address these key challenges

IBG Managing Director Michael Jardine: 

“Peter Bacchus and his advisory team bring a comprehensive set of skills and relationships that are exceptionally well suited to the demands for Ironbark’s pivotal year ahead. BCA has an unrivalled track record and reputation for successful financial mandate execution. 

While Ironbark has established crucial commercial relationships with several third parties in the past (e.g. Glencore and Trafigura) and more recently (e.g. US EXIM Bank), it is clear that more can to be done to ensure the successful development of the Citronen Project. The injection of the experience and expertise of BCA and its access to northern hemisphere capital markets is viewed as the potential catalyst for building investor and lender confidence in the Citronen story, which will be the prelude to securing a finance package that will underpin its development. 

In conjunction with the push towards delivering a thoroughly revised Bankable Feasibility Study in early 2021, today’s announcement is a further step in elevating the marketing of the Citronen Project to a wider international audience, a key objective of the Board. 

The Chairman has recently discussed in the 2020 address to the AGM much of the background to the Board’s current strategy for developing the Citronen project by dealing with the past impediments. The appointment of BCA should be viewed in this context as a supporting strategy to use the soon to be released Bankable Feasibility Study to underpin and secure a project funding package.” 

IBG has engaged BCA on standard commercial terms for an arrangement of this nature. However, in a strong and welcome signal of its support for the Company, and to maximise alignment with IBG shareholders, BCA has agreed to take a significant portion of its overall fees in fully paid ordinary Ironbark shares. 

For full disclosure with regards to the equity conversion: 

• BCA has agreed to convert 100% of its sign on fee into 14,966,652 fully paid ordinary Ironbark shares (based on 20-day VWAP at time of signing), to be issued in two tranches (60% on signing, balance on 1 August 2021) 

• Deferral of one third of monthly retainer into fully paid ordinary Ironbark shares, to be issued on the 12-month anniversary of the engagement at the trailing 12-month VWAP