Ivernia West, the Irish mining company now listed in Toronto, has written off $19.4 million (€19.47 million) of its investment in the Lisheen zinc mine in Co Tipperary.

The writedown led the company to rack up a net loss of $21.1 million or $0.15 per share in the third quarter compared to a $2.1 million loss or a loss of $0.02 per share in the same period last year.

Over the nine-month period ended September 30th, losses totalled $23.7 million against $13.6 million a year earlier.

Ivernia said that completion at the Lisheen mine occurred during the quarter, resulting in the termination of Ivernia's guarantee of the Lisheen project debt of $73.2 million. Discussions with the project debt banking group on the restructuring of the Lisheen debt are currently taking place.

Losses at the mine are currently being financed by Anglo American, which holds the other 50 per cent share of the mine. Ivernia now owes Anglo $57 million, to be repaid out of its share of the mine cashflow. During the quarter, production at Lisheen exceeded 400,000 tonnes for the second consecutive quarter while the mine's developed ore reserves were sustained at 1.2 million tonnes.

However, the zinc price remained in the doldrums, continuing to trade at or around historically low levels during the three-month period.

Of its other interests, Ivernia said that discussions were continuing with potential equity and financing partners regarding the development of its Magellan lead project in western Australia, in which it has a 95.8 per cent interest. The company also said exploration activities remained at a low level. The only direct exploration work done during the quarter was conducted adjacent to Lisheen. Plans to raise up to $1.95 million for general corporate purposes through the issue of convertible notes are expected to be completed during the fourth quarter, Ivernia said.