Glencore invests more in Ireland neighbour Group Eleven

Glencore Canada will buy 15-million units in Group Eleven at C$0.05 a share.

Each unit will comprise one common share and one half of one non-transferrable common share purchase warrant, with each warrant entitling the holder to purchase one additional share in Group Eleven at C$0.10 a share for 36 months from the date of issue.

The private placement is subject to approval and will occur in two tranches, the first C$110 000 of which will close on May 21, while tranche two will close in late June. The remaining C$640 000 is conditional on shareholder approval of Glencore becoming a ‘control person’ of Group Eleven by virtue of holding more than 19.99% of the outstanding common shares.

The transaction will increase Glencore’s shareholding in Group Eleven from 11.6% to 20% on a non-diluted basis.

Group Eleven’s key project in Ireland is a 76.56% interest in the Stonepark project, which it owns in a joint venture with Arkle Resources, and a 100% interest in the adjacent PG West project, near Limerick.

The Stonepark project has an estimated mineral resource of 5.1-million tonnes grading 8.7% zinc and 2.6% lead in the inferred category and is adjacent to Glencore’s Pallas Green deposit, which has an estimated mineral resource of 45.4-million tonnes of 7% zinc and 1% lead.