Investors Paul and Michelle Johnson said they increased their holding in the closely-held Ireland-focused zinc and gold prospecting company to 7.15m shares, representing 9.43%, of the explorer.
Mr Johnson, who had first started building a stake a few months ago, tweeted Connemara’s €1.35m (€1.52m) stock market value was far too low. “Increased my position £1.35m cap - simply wrong valuation!” he tweeted. “£1.35m cap - multiple gold and zinc projects.”
#CON increased my position £1.35m cap - simply wrong valuation!— paul johnson (@pauljohnson9691) July 10, 2017
Connemara has 15 zinc licenses in Ireland, including at Stonepark in Limerick, adjacent to the Limerick to Dublin road, and at Oldcastle in Co Meath. It also has 20 Irish gold prospects.
In recent interviews, chairman Mr Teeling said the price of zinc was “hot” at the moment. He told a YouTube channel, Tip TV Finance that “Ireland is the best place in the world to explore for zinc — it has some of the biggest zinc licenses”. Speaking to Mining Weekly, he said Connemara was keen to find a new joint venture for some of its zinc prospects to help the company tap the rising price of zinc.
It is currently tied with Teck — one of Canada’s largest mining firms. Mr Teeling said that there was interest from mining companies in taking the share Teck controls in the joint venture at Stonepark and that Connemara would facilitate any transaction. Teck, he said, had been “a wonderful partner”.
He told the Irish Examiner yesterday zinc was the “metal of choice” at the moment. Mr Teeling said Connemara has a small shareholder base of 300 investors.