Connemara Elects To Retain Stonepark Stake After Partner Sells Up

LONDON (Alliance News) - Connemara Mining Co PLC said Wednesday it has decided to keep its ...

Alliance News 13 September, 2017 | 2:12PM
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LONDON (Alliance News) - Connemara Mining Co PLC said Wednesday it has decided to keep its stake in TILZ Minerals, a joint venture company, after Group Eleven Resources Corp acquired the interest held by its partner Teck Ireland.

Connemara said G11 has taken the 76.56% stake held by Teck in TILZ Minerals for a consideration of CAD2.2 million, with Connemara being offered CAD2.8 million for its share, but it decided to retain its 23.44% interest.

G11 is a private Canadian company with "extensive" base metal licence holdings in Ireland, and recently announced they are preparing to list publicly in Canada later this year.

The JV holds six prospecting licences covering the Stonepark zinc project in Limerick, Ireland.

The Stonepark property covers 183.5 square kilometres a hosts three main pods at Stonepark North, Stonepark, and Stonepark West, located approximately two to four kilometres west of the Pallas Green zinc deposit.

Connemara Chairman John Teeling said: "This is very good news for shareholders. Stonepark is an advanced asset which we believe has great potential, a view shared by our new partner G11. Rather than accept a cash and royalty offer from G11 we have decided that the best interest of shareholders lies in keeping the 23.44% interest in Stonepark."

"The consideration which Connemara would have received assuming all buybacks represents approximately 75% of the current market capitalisation of the company. We look forward to a resumption of active exploration on the block," Teeling said.

Shares in Connemara were down 0.9% at 2.65 pence Wednesday.

By George Collard; georgecollard@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Connemara Mining Co PLC 2.47 GBX -2.17 -
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