Ivernia West, the exploration company that along with Minorco plans to develop the Lisheen lead and zinc mine in Co Tipperary, said yesterday it had begun work on the site.

"Contracts for the preliminary site works have been awarded and preliminary construction work has commenced," the company said in a statement. "It is expected that mine construction will be completed and the process plant commissioned in June 1999."

The exploration group said its balance sheet to the end of March had strengthened following the first instalment of the proceeds of its July rights issue.

"Ivernia's rights issue of £41.25 million by way of convertible unsecured loan stock has been fully subscribed," the firm said.