Nyrstar Ups Stake in Ironbark by 11%

BRUSSELS, Mar. 30 -- Belgian group Nyrstar (NYR.BR: Quote), the world's biggest producer of zinc, said it had acquired another 11 percent in mining company Ironbark (IBG.AX: Quote) for about $10 million, raising its stake to 30.9 percent.

Ironbark will use the proceeds to fund its 2010 drilling programme at the Citronen zinc-lead deposit in Northern Greenland to determine the site's potential development, the group said on Tuesday.

Ironbark has exploration projects in Australia and Northern Greenland. Its key focus is on the development of the Citronen deposit which Ironbark believes represents one of the world's largest underdeveloped zinc resources.

Nyrstar acquired a 19.9 percent stake in Ironbark in September and has a life of mine agreement for 35 percent of the deposit's commercial production once it starts.

Depending on market conditions, Nyrstar said that could be within three to five years.