Group Eleven Resources completes C$1 million private placement from global miner Glencore

Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF) announced Tuesday that global miner Glencore (LON:GLEN) is backing the exploration company to the tune of C$1 million.

Vancouver-based Group Eleven is advancing the Stonepark zinc project in Ireland, where Glencore owns the 45 million tonne Pallas Green lead-zinc deposit.

Stonepark is a 5.1 million ton zinc deposit grading 8.7% zinc and 2.6% lead in the Inferred resource category.

READ: Group Eleven Resources kicks off diamond drilling at Ballinalack zinc project

The new agreement sees Glencore Canada purchasing 8.4 million units of Group Eleven priced at C$0.12 each for a total consideration of just over C$1 million, an equity ownership of 11.6%.

Each unit consists of one share and one half of one warrant exercisable at C$0.24 each for 35 months following the closing date.

Glencore also has the right to add one member to Group Eleven’s board and participate pro-rata in future financings, provided its ownership remains above 10%.

The miner will also have representation on Group Eleven’s technical committee, as well as offtake rights on the explorer’s zinc projects in Ireland.

“We are excited to have Glencore join our group of strategic shareholders,” said 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.”

Group Eleven has one of the largest zinc ground positions in the Emerald Isle. Ireland is one of the largest zinc producers in Europe and host to some of the world’s largest deposits of the metal.

Shares of Group Eleven shot up 20% in Tuesday morning trading in Toronto at C$0.06.

Contact Angela at [email protected]

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Story by ProactiveInvestors