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Nyrstar (0JNH)

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Monday 28 September, 2009

Nyrstar

Nyrstar agrees to acquire 19.9% interest in Iro...





Balen, Belgium (28 September 2009) - Nyrstar NV today announced that
it has agreed to acquire a 19.9% interest in Ironbark Gold Limited
(ASX-IBG) (Ironbark) for (approximately) ยค3.5 million.

Ironbark is an Australian publicly listed mining company with
exploration projects in Australia and Northern Greenland.  Ironbark's
key focus is the development of the world-class Citronen zinc-lead
deposit in Northern Greenland which Ironbark believes represents one
of the world's largest undeveloped zinc resources.  In November 2008,
Ironbark issued an updated JORC Code compliant resource statement for
the Citronen zinc-lead deposit indicating a total ore resource
(indicated and inferred) of (approximately) 56 million tons at
(approximately) 5.4% zinc and 0.6% lead.

As part of the acquisition, Ironbark has also agreed to grant Nyrstar
a life of mine off-take agreement in relation to 35% of the
production of the Citronen zinc-lead deposit once commercial
production commences which, depending on market conditions, Nyrstar
believes could be achieved in the next 3 to 5 years.

The acquisition will occur by way of an issue of new shares in
Ironbark to Nyrstar in two (2) tranches.  Completion of the placement
of the first tranche (giving Nyrstar a 13% interest) is expected to
occur this week, subject to receipt of a waiver from the Australian
Securities Exchange (see below).  Completion of the placement of the
second tranche is subject to Ironbark shareholder approval and will
result in Nyrstar having a 19.9% interest in Ironbark.  Ironbark
intends to convene a shareholders' meeting seeking the requisite
approval.  Subject to Ironbark receiving shareholder approval,
completion of the placement of the second tranche is expected to
occur during H2 2009.  The Board of Ironbark intends to unanimously
recommend the transaction to its shareholders.

Ironbark has also sought the approval of the Australian Securities
Exchange to grant Nyrstar a non-dilutive pre-emptive right that would
allow Nyrstar to participate on a pro-rata basis in any future
capital raisings in order to maintain its relative shareholding.

Mr Erling Sorensen, chief commercial officer of Nyrstar has been
appointed to the Board of Ironbark.  Commenting on the acquisition,
Mr Sorensen stated:

"We are excited by this investment and our new relationship with
Ironbark as we believe that the Citronen zinc-lead project has the
potential to become one of the world's most significant zinc mines,
comfortably placed on the cost curve and well positioned to supply
our European smelters for years to come.

We believe that the fundamental outlook for zinc is positive and this
investment is a commitment to the long term sustainable future of our
business and our position as a leader in the zinc industry".

                               - end -

About Nyrstar
The partner of choice in essential resources for the development of a
changing world.  Nyrstar is a leading global multi-metals'  business,
producing significant quantities of  zinc and lead  as well as  other
products (including silver, gold and  copper).  Nyrstar is listed  on
NYSE Euronext Brussels under the symbol NYR. For further  information
visit the Nyrstar website, www.nyrstar.com.


Contacts

Michael Morley
Director, Legal and
External Affairs
T: +44 20 7408 8120
[email protected]

Investors

Chris James
Group Manager,
Investor Relations
T: +44 20 7408 8161
M: +44 7912 269 497
[email protected]

Media

Geert Lambrechts
Manager,
Corporate Communications
T: +32 14 449 646
M: +32 473 637 892
[email protected]


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.




                                                      

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