IronRidge Resources Limited (AIM: IRR, ‘IronRidge’ or the ‘Company’), the African focussed minerals exploration company, is pleased to announce that it has entered into an agreement with Joy Transporters Ltd (‘Joy Transporters’).
For the acquisition of 100% of the share capital of Joy Transporters giving IronRidge full ownership of a further and highly prospective lithium exploration portfolio in Ghana (the ‘Saltpond and Cape Coast Portfolio’).
The Saltpond and Cape Coast Portfolio, which is in line with the Company’s vision and growth strategy in Africa, represents a highly prospective ground holding with high-priority geological, geochemical and geophysical pegmatite targets adjacent to the Company’s Ewoyaa Project in Ghana (JORC Compliant Maiden Mineral Resource estimate of 14.5Mt at 1.31% Li2O) .
Ø The acquisition of Joy Transporters is in return for the issue of 2, 360,035 shares in IronRidge at a price of 22.5 pence per Ordinary Share; representing a significant premium to the current share price.
Ø Former shareholders of Joy Transporters further endorse the IronRidge vision through the Lock In of their IronRidge Shares for 12 months.
Ø Low-cost, regional exploration programmes ongoing throughout the portfolio; including reconnaissance mapping and trenching within the Saltpond license and grid auger drilling programmes within the Apam East license.
Ø Long-lead baseline environmental and social studies and monitoring ongoing.
Ø Ideal infrastructure support: with projects located within 90km of the operating Takoradi deep-sea port, within 110km of the capital Accra and adjacent to the sealed bitumen Takoradi – Accra highway and high-power transmission line.
Ø Highly supportive government with an extensive mining history, strong diversification drive and pro renewable and stored energy space initiatives.
Ø IronRidge team to advance the licenses and future growth strategies with simplified operations and structure for future growth.
Any Figures and Tables referred to in this release can be viewed in the PDF version available via this link:
Commenting on the Company’s latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“We are delighted to have completed this significant acquisition ahead of schedule and at a significant premium to IronRidge’s current share price.
“The acquisitions are part of our strategic plan in the region providing valuable synergies with the IronRidge team and its growth strategy of creating and sustaining shareholder value through the discovery of fundamentally robust lithium projects.
“The Board is very pleased with the outright acquisitions and looks forward to keeping shareholders and investors updated with exploration progress.”
Details of Acquisition
On 17 January 2018, the Company announced that it had entered into an earn in arrangement with Joy Transporters Limited, under which IronRidge had earn in rights to acquire 100% of the projects whilst maintaining a residual Net Smelter Royalty of 2.5% of which 50% can be acquired by IronRidge for US$3m at any time.
The consideration and transfer of full ownership of Joy Transporters is in return for the issue of 2, 360,035 depositary interests of no-par value each (‘Ordinary Shares’ or the ‘IronRidge Shares’) in IronRidge at 22.5 pence per Ordinary Share.
Completion of this acquisition is subject to regulatory approvals and processes in addition to Ministerial approvals.
The shares will be issued and allotted following the completion of the approval and transfer processes as detailed above. A further announcement will be made upon completion of the regulatory approval process for the acquisition of Joy Transporters detailing the issue, allotment and admission to trading of the Ordinary Shares on AIM.
The acquisition of Joy Transporters supersedes the Company’s previous investment and earn in arrangements, which have now been terminated.
The former shareholders of Joy Transporters have all elected to a voluntary lock in preventing the sale of the IronRidge Shares for a period of 12 months (the “Lock In”).
Ownership of Joy Transporters provides IronRidge with full ownership of the recently renewed Saltpond license and Cape Coast license application. The highly prospective license and application represent an extensive tenure package adjacent to the Company’s flagship Ewoyaa Project with a maiden mineral resource estimate of 14.5Mt at 1.31% Li2O, within the broader Cape Coast Lithium Portfolio in Ghana, West Africa ( refer to Figure 1).
The Company is continuing with low-cost regional exploration programmes including reconnaissance mapping, sampling and trenching of exploration targets within the Saltpond license and detailed auger drilling for mapping and sampling below cover within the Apam East license.
Long lead environmental and social baseline studies and monitoring is ongoing with dry season surveys underway to feed into future Scoping Study design.
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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