Ironbark Zinc (ASX:IBG) shares hit $0.175 intra-day yesterday, as the company's valuation continues to climb as its leveraged to a rising zinc price.
Zinc is currently trading at around US$1.06 a pound, which is 20% higher than six months ago.
Ironbark's shares closed at $0.155, or around three times higher than just two months ago.
To highlight the investor interest in Ironbark, daily share volume for the past three months has been around 2.5 million, or four times higher than the daily average in the preceding three month period.
In August the company raised $2.5 million at $0.09 but could have attracted $10 million in a heavily oversubscribed bookbuild to progress permitting and pre-development preparation works at its wholly-owned Citronen Zinc Project in Greenland.
Citronen is one of the world’s largest undeveloped zinc projects with a current resource of 71 million tonnes at 5.7% of zinc and lead.
The project is recognised as a project of strategic importance in the “Oil and Mineral Strategy for 2014 to 2018” document where its development is expected to deliver strong employment and revenues to Greenland.
Ironbark has a US$50 million convertible note funding facility with Glencore Xstrata to fund growth opportunities.
Zinc is the fourth most used metal globally with half of its used in construction, roofing and vehicle industries.
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