Group Eleven Resources, a private Canadian company, has acquired the 76.56 per cent stake held by Teck Ireland in TILZ Minerals for $2.15 million in Canadian dollars, plus add ons if certain targets are met.
The Connemara Mining Company said in a note to the Irish Stock Exchange that its board had been informed of the development.
TILZ Minerals is a joint venture company which holds six prospecting licences covering the Stonepark zinc project in Limerick. Connemara owns the remaining 23.44 per cent.
Group Eleven is a private Canadian company with extensive base metal licence holdings in the Republic.
MAG Silver and Teck Resources, which are both listed Canadian companies, hold 22 per cent and 6.3 per cent respectively of the equity on a fully diluted basis. Group Eleven has announced it is preparing to list publicly in Canada later in 2017.
Connemara Mining Company chairman John Teeling said the development was "very good news" for shareholders.
“Stonepark is an advanced asset which we believe has great potential, a view shared by our new partner Group Eleven,” he said.
“Rather than accept a cash and royalty offer from Group Eleven we have decided that the best interest of shareholders lies in keeping the 23.44 per cent interest in Stonepark.
“The consideration which Connemara would have received assuming all buybacks represents approximately 75 per cent of the current market capitalisation of the company. We look forward to a resumption of active exploration on the block.”
