Completion of Acquisition of Bodite and Bianouan Gold Licenses
Gold Project, Côte d’Ivoire
IronRidge Resources Limited (AIM: IRR, “IronRidge” or the “Company”), the African focussed minerals exploration company, is pleased to announce that it has now completed the acquisition with Major Star SA (“Major Star” or “MSSA”) to acquire 100% of the Bodite and Bianouan gold licenses (collectively the “Licenses”), which gives IronRidge full ownership of a highly prospective gold exploration portfolio in Côte d’Ivoire (refer RNS of 02 March 2020).
Figures and Tables referred to in this release can be viewed in the PDF version available via this link:
Ø Acquisition of the Bodite and Bianouan Gold licenses in return for the issue of 1,550,388 depositary interest of no-par value each (“Ordinary Shares”) in IronRidge at a price of 18 pence per Ordinary Share, a significant premium to IronRidge’s current share price.
Ø The acquisition completes IRR’s 100% ownership of this highly prospective and strategic landholding at Bodite and Bianouan.
Ø Previously reported high-grade air core (“AC”) drilling results from the Bianouan license at a 0.15g/t gold cut-off with maximum 2m of internal dilution, including (refer RNS of 19 March 2019):
o 12m at 5.87g/t gold from 10m, including 2m at 33.8g/t gold
o 8m at 1.29g/t gold from 8m, including 2m at 3.17g/t gold
o 1m at 3.13g/t Au from 32m at end of hole
Ø Previously reported AC drilling results at the Bodite license at a 0.15g/t gold cut-off with maximum 2m of internal dilution, including (refer RNS of 19 March 2019) :
o 2m at 9.01g/t gold from 32m
o 2m at 2.74g/t gold from 14m
o 10m at 0.3g/t (including 2m at 0.59g/t gold) from 12m
o 22m at 0.21g/t gold from surface
Ø IronRidge team to advance the projects, as per the Company’s growth strategy.
Ø Former owners of the Licenses endorse the IronRidge vision and strategy by voluntarily agreeing to a 12 month Lock In of the 1,550,388 Ordinary Shares issued to Major Star shareholders as consideration for the acquisition of the Licenses.
Ø Streamlined operations with continuity and structure for future growth within the Zaranou Portfolio.
Commenting on the Company’s latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“We are delighted to have completed this acquisition allowing us to consolidate the Zaranou portfolio at a significant premium to IronRidge’s current share price.
“The Bodite and Bianouan gold licenses complement our flagship Zaranou gold license and represent a highly prospective ground holding with high-priority air core drilling intersections and significant soil anomalies .
“The acquisition of the Licenses is in line with our strategic growth plan; of creating and developing valuable synergies within the Company’s existing portfolio in the region, with the ultimate ambition of driving and sustaining shareholder value through the discovery of world-class assets.
“We are very pleased with the work programmes completed to date and look forward to keeping shareholders and investors updated on our progress.”
Details of Acquisition
The Company announced on 28 March 2017 that it had entered into a Joint-Venture Agreement with Major Star, under which IronRidge had rights to acquire 100% of the Licenses with Major Star maintaining a residual NSR of 2.5% of which 40% can be acquired for between US$2.5m at any time. The staged earn in agreement has now been terminated with Major Star retaining the residual NSR as a result of the issue of 1,550,388 Ordinary Shares to Major Star and or its nominees.
The consideration and transfer of full ownership of the Bodite and Bianouan licenses is in return for the issue of 1,550,388 Ordinary Shares in IronRidge at 18 pence per new Ordinary Share. completion of this acquisition has now occurred.
The issue of 1,550,388 Ordinary Shares equates to a 0.374% interest in the enlarged share capital of IronRidge.
The acquisitions of Bodite and Bianouan supersedes the company’s previous investment and earn- in arrangements with this party, which have now been terminated.
All shareholders of Major Star have elected to a voluntary lock in of preventing the sale of the IronRidge Shares for a period of 12 months (the “Lock In”) from admission of the shares on or about 23 December 2020.
Ownership of the two licenses provides IronRidge with access to exclusive rights to highly prospective tenure which complements its Zaranou license (refer Figure 1).
The Company previously completed soils, auger, trenching and an air core (AC) drilling over the Bianouan and Bodite licenses (refer to RNS 19 September 2019and 1 July 2019). The results of the exploration AC drilling programme delivered high-grade gold intersections, confirming the prospectivity of the licenses.
High-grade AC drilling results including 12m at 5.87g/t gold from 10m (including 2m at 33.8g/t gold), 8m at 1.29g/t gold from 8m (including 2m at 3.17g/t gold) and 1m at 3.13g/t gold at end of hole (33m) were returned at Bianouan.
At Bodite AC drilling results returned broad, low level anomalism with best results including 10m at 0.3g/t (including 2m at 0.59g/t gold) from 12m and 22m at 0.21g/t gold from surface. Results also returned narrow higher-grade intervals inclufding 2m at 9.01g/t gold from 32m and 2m at 2.74g/t gold from 14m.
The Bodite license (PR_416) and Bianouan license (PR_417) covering a surface area of 200.1km2 and 204.93km2 respectively are granted for a further 3-year period. Both licenses are within their third renewal term.
Admission & Total Voting Rights
An application will be made to the London Stock Exchange for the 1,550,388 new Ordinary Shares to be admitted to trading on AIM. Dealings in the shares are expected to commence at 8:00am on or around Wednesday 23 December 2020.
Following the issue of these shares, the Company will have 415,072,888 Ordinary Shares in issue with each share carrying the right to one vote. The Company does not hold any Ordinary Shares in Treasury.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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