TORONTO (miningweekly.com) – Canadian miner Ivernia hopes to position itself as a base metal mining, exploration and development company with a focus on lead metal through a $30-million deal to buy Geo Zone Exploration.

Ivernia said on Tueday that it would acquire all the Geo Zone's outstanding shares by issuing about 1.57-billion Ivernia shares to Geo Zone shareholders, at a price of C$0.025 apiece.

In connection with the transaction, which was expected to close on November 15, Ivernia creditor Enirgi Group would convert debt of about C$12.46-million into about 498.55-million Ivernia shares at a price of C$0.025 each.

"The proposed transaction allows Ivernia's minority shareholders to maintain a meaningful equity stake in the company, while the company continues to examine additional options to further improve its financial condition,” chairperson of a special board committee Robert Metcalfe said.

The proposed transaction was designed to improve Ivernia’s financial condition by eliminating a significant amount of debt owing to Enirgi Group, while Geo Zone's two new mineral properties would create new optionality for the company. This would include planning for the future development of new base metal projects beyond the cornerstone Paroo Station mine, in Western Australia, which was the world's largest lead carbonate mine. On January 16, the mine was placed on care and maintenance amid difficult market conditions.

Ivernia planned to change its name to Leadfx and undertake a share consolidation of the issued and outstanding common shares of Ivernia at a ratio of at least 50:1.

Further, while currently not in production, Geo Zone's assets offered the future potential for revenue streams through industrial mineral production.

Geo Zone's main assets consisted of a 83.5% interest in Chief Consolidated Mining, an Arizona company with an interest in mineral properties in Utah; an intercompany loan owed by Chief in the principal amount of $2.39-million and a 100% interest in North 67, an Alaskan company holding mineral properties in the state. Before 2015, these assets were held by Andover Mining.