Connemara Mining upbeat on joint venture ownership shake-up

Connemara Mining Company said on Wednesday that it has been informed that Group Eleven Resources, a private company, has acquired the 76.56% interest held by Teck Ireland in TILZ Minerals, the joint venture company which holds six prospecting licences covering the Stonepark zinc project in Limerick, Ireland.

The AIM-traded Connemara owns the remaining 23.44%.

It said G11 is a private Canadian company with “extensive” base metal licence holdings in Ireland.

MAG Silver and Teck Resources - both listed Canadian companies - hold 22.0% and 6.3% respectively of the equity on a fully diluted basis.

G11 had previously announced that they are preparing to list publicly in Canada later in 2017.

“This is very good news for shareholders,” said Connemara chairman John Teeling.

“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, Teeling said the board had decided that the best interest of shareholders lay 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.”