Group Eleven joins forces with Glencore for zinc exploration in Ireland

Group Eleven Resources has announced a non-brokered private placement and shareholder rights agreement with Glencore’s zinc projects in the Republic of Ireland.

The offering consists of 8,400,000 units at a price of $0.12 per unit for gross proceeds of $1,008,000. All currency is denominated in Canadian dollars. Glencore is the owner of the Pallas Green project in Ireland, which hosts the Pallas Green deposit (45.1 million tonnes of 7% zinc and 1% lead).Group Eleven’s adjacent Stonepark project hosts the Stonepark zinc deposit (5.1 million tonnes grading 8.7% zinc and 2.6% lead).

“We are excited to have Glencore join our group of strategic shareholders,” commented Bart Jaworski, CEO of Group Eleven. 

“Glencore’s extensive experience in Ireland, especially at the Pallas Green zinc project, will provide an important dimension to Group Eleven’s ‘Big Think’ strategy and should significantly enhance drill target definition and subsequent testing at Stonepark, Ballinalack and our other zinc projects. This cooperation ought to greatly aid our efforts to further grow shareholder value.”

SEE ALSO:

Group Eleven Resources begins drilling program at high grade zinc deposit in Ireland

Global zinc production set to ramp by 2.1%

Mining Ireland: sourcing for sustainability

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Highlights

• Glencore has purchased 8,400,000 units in the capital of the Company at a price of $0.12 per unit for total consideration of $1,008,000, implying an equity ownership of 11.58%;
• Each unit consists of one common share and one half non-transferrable common share purchase warrant; each warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.24 per share for 36 months from the date of issue;
• Glencore has the right to add one member to Group Eleven’s board of directors, provided that Glencore’s equity ownership in the Company remains above 10%;
• Glencore has a right to participate pro-rata in future equity financings of Group Eleven, provided that Glencore’s equity ownership in the Company remains above 10%;
• In order to facilitate information-sharing, Glencore will have representation on Group Eleven’s technical committee, provided that Glencore’s equity ownership in the Company is above 10% (Group Eleven retains full control of all budgeting and exploration work);
• Glencore has received off-take rights, to be priced and negotiated on market terms, on Group Eleven’s pro-rata share of all its zinc projects in Ireland

About Group Eleven Resources

Group Eleven Resources is a mineral exploration company focused on advanced stage zinc exploration in Ireland. The company’s large land package allows Group Eleven to leverage new geological approaches and geophysical technology to systematically rethink key aspects of the Irish zinc district. 

The company’s two key projects in Ireland include: a 60% interest in the Ballinalack project (joint ventured with Nonfemet - one of the largest zinc producers in China), located in north-east Ireland, hosting potential Navan Bed mineralization in the Pale Beds; and a 75.56% interest in the Stonepark project (joint ventured with Arkle Resources plc), located near Limerick, next to one of the world’s largest undeveloped zinc deposits: Glencore’s Pallas Green deposit.

The company’s team includes accomplished mining professionals with direct experience in finding mines, building companies and exploring Irish zinc deposits.