Glencore is aiming to expand its zinc portfolio by increasing an interest in Vancouver-based junior Group Eleven Resources.
Group Eleven holds the largest ground position in Ireland, with 99 prospecting licences covering 3200 square kilometres across four projects.
Its key operations are the Stonepark joint venture (JV) project with Arkle Resources, and the PG West project that is adjacent to Glencore’s Pallas Green zinc project.
Glencore plans to invest $C750,000 ($828,430) to purchase 15 million units of Group Eleven at $C0.05 a unit via a subscription agreement, taking Glencore’s shareholding in Group Eleven from 11.6 per cent to 20 per cent.
Group Eleven intends to use the proceeds for its general corporate purposes and zinc exploration in Ireland.
The transaction is subject to Group Eleven and shareholder approval, and is expected to close in late June.
Should Glencore own at least 20 per cent of interest in Group Eleven, it will have the right to nominate a second director to the latter’s board.
Glencore currently mines and processes zinc in Australia, South America, Kazakhstan and Canada.
Its Pallas Green deposit in Ireland is one of the world’s largest undeveloped zinc deposits, hosting an estimate mineral resource of 45.4 million tonnes of 7 per cent zinc and 1 per cent of lead in the inferred category.