Nyrstar to acquire 19.9% stake in Ironbark Gold

Nyrstar NV has agreed to acquire a 19.9% stake in Ironbark Gold Limited, an Australia-based company engaged in base metal and gold exploration and development, for AUD6.6 million ($5.71 million). Nyrstar is a Belgium-based metals processing and recycling company.

Under the agreement, Ironbark Gold will issue 52,843,559 new shares to Nyrstar via private placement offering of shares under two tranches to acquire 19.9% stake in Ironbark Gold. The first tranche of placement would consist of 31,905,294 shares at a price of AUD0.125 ($0.108) per share to raise AUD3.98 million ($3.44 million). The second tranche of placement would consist of 20,938,265 shares to raise a further of AUD2.62 million ($2.26 million).

Ironbark Gold has also agreed to grant Nyrstar a life of mine off-take agreement in relation to 35% of the production from the Citronen deposit.

Deal Value (US$ Million) 5.71
Deal Type                Private Placement
Sub-Category             None
Deal Status              Announced: 2009-09-28

Deal Participants

Target (Company)   Ironbark Gold Limited
Acquirer (Company) Nyrstar NV

% Acquisition     19.9%
No. Shares Issued 52843559

Related terms: acquisition, australia, belgium, exploration, gold, metals, Private Placement