Ironbark Zinc expands into Brazil with major lithium project acquisition

Ironbark Zinc (ASX: IBG) has entered into an agreement to acquire the Perseverance lithium project in Brazil.

The company has commenced a capital raising to secure funds, aiming to raise $100,000 in cash to acquire 100% of Perseverance Lithium, owner of the Perseverance project.

This new asset purchase follows a decision by the company earlier this month to acquire an 80% interest in two copper exploration licences in Queensland.

Lithium / niobium potential

The new Perseverance package consists of seven key projects in northeastern Minas Gerais in Brazil’s renowned “lithium valley”.

Perseverance comprises 27 tenements with a total area of around 52,000 hectares in a region known for its lithium potential, with local mines operated by CBL, Sigma Lithium and Latin Resources.

Managing director Michael Jardine said Ironbark is now planning and preparing to commence exploration activities on the newly acquired projects, which are located in an area that also hosts potential for the discovery of other critical minerals including niobium.

‘Ongoing pivot’ continues

“The ongoing pivot of Ironbark Zinc continues with the acquisition of the Perseverance project following soon after we secured the Simon-Anderson copper projects in Mt Isa,” Mr Jardine said.

“Perseverance provides the company with enormous exposure to one of the hottest hard rock lithium neighbourhoods in the world at a very low cost and complements the other base metal projects in our portfolio.”

“Brazil is a very well-established mining jurisdiction and, in my opinion, significantly improves our overall sovereign risk profile.”

Ironbark also recently elected to allow an option to acquire a 70% interest in the multi-element Daltons and Bamboo Creek projects in Western Australia to expire without being exercised.

Capital raising

Ironbark has received firm commitments to raise $715,000 via a placement being conducted in two tranches.

Leading Melbourne boutique broking firm Peak Asset Management led the raise, the proceeds of which will be used to settle the acquisition of Perseverance and to fund initial exploration programs at the Mt Isa and Perseverance projects.

Mr Jardine said the company’s geological team has already completed a positive maiden reconnaissance trip to Mt Isa.