Zinc of Ireland Advances with Meclex Acquisition and Kildare Drilling Program

• Binding agreement to acquire Meclex and its ARGO and VOLTA technologies
• 4,000m diamond drilling program at Kildare scheduled from July 2026
• Placement raising A$5.5 million underway to fund exploration and tech development
• New board appointments including CEO Greg Ross and Chairman Mark Pearce
• Limited activity on Mt Clere and Murchison gold projects as non-core assets

Meclex Acquisition Targets Sustainable Metal Recovery

Zinc of Ireland NL (ASX:ZMI) has taken a bold step by signing a binding share purchase agreement to acquire 100% of Meclex, a Netherlands-based company developing two proprietary hydrometallurgical technologies: ARGO and VOLTA. These processes promise to disrupt traditional zinc and lead recovery methods by offering low-temperature, low-emission alternatives to energy-intensive pyrometallurgical treatments.

The ARGO technology focuses on extracting zinc, lead, silver, and critical minerals such as gallium, germanium, and indium from zinc leach residue (ZLR), a by-product of primary zinc smelting. It aims to deliver higher metal recoveries while reducing energy consumption, carbon emissions, and hazardous waste disposal liabilities. Meclex’s cooperation agreement with Nyrstar, a leading zinc and lead producer, underscores genuine market demand for ARGO’s capabilities.

Meanwhile, VOLTA targets the recycling of end-of-life lead-acid batteries through a low-energy, ambient-temperature hydrometallurgical process. It promises to eliminate toxic gases, drastically cut carbon emissions, and achieve ultra-high lead recovery rates exceeding 99%, aligning with upcoming EU regulatory targets. A cooperation agreement with FIB S.p.A, controlled by SERI Industrial S.p.A, provides a clear pathway to commercialisation within Europe.

These technologies arrive as European heavy industry grapples with soaring energy costs, stringent carbon compliance, and tightening waste regulations. The Meclex acquisition offers ZMI a foothold in addressing these structural pressures, potentially unlocking substantial value from currently discarded critical minerals. The company’s focus on integrating ARGO with its Kildare zinc project could enhance project economics and environmental credentials, as it embarks on a 4,000-metre diamond drilling program planned for July 2026.

Kildare Drilling Program and Exploration Updates

Exploration efforts in the March quarter centred on the Rathdowney Trend in Ireland, where ZMI controls 17 prospecting licences covering 558 square kilometres. The flagship Kildare deposit holds an inferred mineral resource estimate of 11.3 million tonnes grading 9% combined zinc and lead. Recent geophysical and geochemical surveys have refined drill targets adjacent to the existing resource.

Building on this groundwork, ZMI has initiated a 4,000-metre diamond drilling program at Kildare, designed to test resource extensions, regional step-outs, and provide samples for metallurgical testwork linked to the ARGO technology integration. The program is slated to run through the remainder of 2026, with assay results expected from the fourth quarter onward. This drilling phase will inform a scoping study planned for 2027, which will assess mining, processing, and infrastructure options, alongside downstream optimisation opportunities.

Exploration activity at the Mt Clere and Murchison gold projects in Western Australia was limited during the quarter, with management evaluating options to maximise shareholder value from these non-core assets. This strategic focus on Kildare aligns with ZMI’s broader ambition to leverage its newly acquired technologies and Irish zinc assets.

Corporate Changes and Funding Position

Corporate developments include the appointment of Mr Greg Ross as CEO effective 9 April 2026 and Mr Mark Pearce as Non-Executive Chairman from 15 April 2026, with former Chairman Peter Huljich transitioning to a Non-Executive Director role. Ross brings over 35 years of experience in engineering and technology commercialisation, while Pearce has a track record in resource company development.

Financially, ZMI secured a non-interest-bearing, unsecured A$200,000 loan facility from Non-Executive Director Thomas Corr during the quarter to support working capital. Post-quarter, the company had cash at bank of A$172,000. To fund its ambitious exploration and technology development plans, ZMI launched a placement to raise A$5.5 million, with the first tranche of A$823,016 completed under existing placement capacity. The second tranche, amounting to A$4.68 million, awaits shareholder approval at a meeting scheduled for early June 2026.

This capital raising is critical given the company’s cash burn and limited available funding, with estimated cash runway of less than one quarter at current expenditure levels. The placement will underpin the Kildare drilling program and support pilot development phases for ARGO and VOLTA technologies, which remain contingent on successful testing and regulatory acceptance.

Strategic Implications and Industry Positioning

ZMI’s acquisition of Meclex and its proprietary technologies positions the company at the intersection of mining, metallurgical innovation, and environmental regulation. The ARGO process’s potential to recover critical minerals from zinc smelter residues could unlock new revenue streams and reduce environmental liabilities, a compelling proposition amid rising carbon costs and tightening waste frameworks in Europe.

Similarly, VOLTA’s disruptive approach to lead-acid battery recycling aligns with growing circular economy imperatives and EU regulatory mandates, offering a high-recovery, low-emission alternative to traditional smelting. The cooperation agreements with established industrial partners Nyrstar and FIB S.p.A mitigate execution risks and provide access to feedstock and pilot facilities, accelerating the path to commercialisation.

However, the commercial viability of these technologies hinges on successful pilot demonstrations scheduled for 2026-2027 and subsequent market acceptance. Meanwhile, the Kildare drilling results will be pivotal in determining the scale and economics of resource expansion and integration with ARGO’s processing benefits.

Investors will note the company’s tight cash position and reliance on the pending tranche 2 placement and shareholder approval for the Meclex acquisition. The new leadership team’s ability to navigate these milestones and deliver tangible progress on exploration and technology fronts will be critical to ZMI’s trajectory in the coming year.

Zinc of Ireland’s strategic pivot toward metallurgical innovation and sustainable resource development reflects wider industry trends seeking to reconcile resource extraction with environmental stewardship and critical mineral supply security. As the company advances its drilling program and pilot technology phases, the next 12 months promise to be defining.

This follows the company's recent Meclex acquisition and placement announcement and builds on prior Zinc of Ireland’s exploration progress at Mt Clere, underscoring a shift in operational focus and capital allocation.

Bottom Line?

ZMI’s integration of Meclex’s hydrometallurgical technologies with its Kildare zinc project marks a strategic inflection, but success depends on drilling outcomes, pilot plant results, and shareholder backing for its capital raise.

Questions in the middle?

• Will ARGO and VOLTA technologies achieve commercial viability within projected timelines?
• How will drilling results at Kildare influence the scope and economics of resource development?
• Can the new leadership team secure shareholder support and manage tight cash flow to execute growth plans?