IronRidge Resources Limited (AIM: IRR, ‘IronRidge’ or the ‘Company’) is pleased to announce that it has now completed its acquisition of 100% of Tekton Minerals Pte Ltd (“Tekton”), providing IronRidge with full ownership of a highly prospective gold exploration portfolio in Chad.
HIGHLIGHTS:
Ø IronRidge has completed the acquisition of 100% of Tekton.
Ø As part of the acquisition, Tekton’s highly skilled technical and logistics team will join the IronRidge team to advance the projects and future growth strategies.
Ø Tekton’s major and minority shareholders endorse IronRidge’s vision and strategy by electing full consideration in IronRidge shares.
Ø Tekton’s major shareholders further endorse the IRR vision and strategy by voluntarily escrowing their IronRidge shares for 12 months.
Ø Cemented commodity and jurisdiction diversity.
Ø Focused executive and management teams.
Ø Streamlined operations with continuity and structure for future growth.
Commenting on the Company’s latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“We are delighted to announce that we completed this significant acquisition ahead of schedule, which is part of the execution of our vision and growth strategy for Africa.
The Chad portfolio represents a highly prospective ground holding with high-grade gold targets within an underexplored yet highly prospective gold Province, potentially analogous to the world class Tintina Province in the Alaska and Yukon Territory.
The size and extent of artisanal gold workings and the occurrence of coarse, visible gold endorse our strategy.
The Tekton team offers extensive francophone exploration, logistics and government relations expertise gained throughout West and Central Africa, providing valuable synergies with the IronRidge team and its growth strategy.
We are very pleased with the work programs completed to date, and look forward to keeping shareholders and investors updated as more news becomes available.”
Details of Acquisition
The Company announced on 21 September 2016 that it had acquired 6% of Tekton and entered into an investment arrangement with Tekton under which IronRidge had rights to invest US$3.5 million in Tekton over an 18-month period to acquire up to a 58% interest in Tekton.
On 12 June 2017, IronRidge announced its proposal to acquire 100% of Tekton in return for the issue of 10,000,000 shares in IronRidge. Completion of this acquisition has now occurred and the Company has issued the 10,000,000 shares to the 18 former shareholders of Tekton. This equates to a 3.8% interest in the enlarged share capital of IronRidge.
The acquisition of Tekton supersedes the previous investment arrangements with Tekton, which are now terminated.
Tekton’s highly skilled technical and logistics team has been retained by IronRidge to continue to advance the Chad gold projects. Two Tekton directors will remain on the Board of Tekton, together with three IronRidge appointed directors and one Singapore resident director. There is no change to the Board of IronRidge arising from the transaction.
Ownership of Tekton provides IronRidge with access to exclusive rights to an extensive granted tenure package with first mover advantage and associated exciting gold exploration targets with large scale and high-grade potential (the ‘Projects’) in Chad, Central Africa.
Project Update
The Company in conjunction with the Tekton team is currently planning for the pending field season, with teams expected to mobilise to country during September 2017. Final results of the previous field season are due imminently and will be used to finalise the field programs. Field work is estimated to commence in October 2017 after the effects of wet season rains abate.
About Chad
With a population of 13.6 million (World Bank, 2016), Chad covers a surface area of 1.2 million km2. It is a stable Republic with a US$2,500 GDP per capita per annum (2013 estimate), is a member of the OHADA and EITI, and has a projected economic growth of 11.2% (African Economic Outlook, 2014). Major oil companies including Total, Exxon, Chevron and Glencore have been active in Chad for several decades and the region is a major oil producer and refiner for the domestic and international markets.
Chad has an attractive Mining Code and investment framework. Mineral exploration licenses are granted for 5 years and are renewable twice for a total of 10 years. Mining licenses are granted for a 25 year term and are renewable. The licenses offer a tax holiday period up to a maximum of 10 years and a corporate tax rate of 35% (negotiable). The State has the right for a 10% free carry and 2% royalty.
Issue of Equity
As outlined above, and as a result of the finalisation of the acquisition of Tekton, IronRidge has today allotted and issued 10,000,000 fully paid ordinary shares to Tekton’s 18 former shareholders.
An application has been made to the London Stock Exchange for the shares to be admitted to trading on AIM. Dealings in the shares are expected to commence at 8:00am on or about Monday 11 September 2017.
Following the issue of these shares, the Company has 272,466,158 fully paid ordinary shares on issue.
Furthermore, under the terms of employment of the Tekton management team, IronRidge has today issued or granted to the Tekton management team, a total of:
· 4,500,000 IronRidge options having an exercise price of £0.40 and an expiry date of 2 years from the date of issue;
· 4,500,000 IronRidge options having an exercise price of £0.60 and an expiry date of 3 years from the date of issue;
· 450,000 performance rights which vest in September 2017, entitling the recipient to the equivalent number of shares in IronRidge; and
· 450,000 performance rights which vest in September 2018, entitling the recipient to the equivalent number of shares in IronRidge.
The Board is delighted with the progress that the Company has made in 2017 and looks forward to keeping shareholders updated as further news becomes available.
