Ivernia West has been granted prospecting licences to carry out exploration in Northern Ireland's Clogher Valley. The company has set aside up to £500,000 a year for exploration in various areas, over the next two years.

Ivernia West is also a partner with Minorco in a joint venture in Lisheen, Co Tipperary, where it is developing a £165 million lead and zinc mine. The mine, which will employ 300 people, should be operational by July 1999, shareholders were told yesterday at Ivernia's a.g.m.

Ivernia chief executive, Mr David Hough said last night that the company would spend around £100,000 over the next 18 months carrying out exploration on a 250 sq km area in the Clogher Valley on the Tyrone/Fermanagh border.

He said reconnaissance work had already been undertaken by the British Geographical Survey and some metal values had been identified in streams and soils. Mr Hough said he was optimistic that the area would prove fruitful.

He said the company was also looking at ventures in Europe, including Spain and Sweden, and North America. The company may make an announcement regarding exploration in North America shortly.

Shareholders were told that framework contracts for zinc concentrate sales in the initial five years had been finalised with seven major European and North American purchasers. The revenue from the sale of concentrates will be determined at the time of sale.

Ivernia chairman, Mr Clayton Love said, despite recent falls in spot and forward zinc prices, the outline for the zinc price remained positive.

Mr Hough said Lisheen, which currently has a life expectancy of 14 years, would be a low-cost zinc producer and would be able to operate profitably when zinc prices were low. He added that it was hoped the company could pay shareholders a dividend "in the early years of the mine's operation".