TIDMIRR
RNS Number : 6018E
IronRidge Resources Limited
02 March 2020
2 March 2020
Acquisition of Bodite and Bianouan
Gold Licenses, Côte d'Ivoire
Issue of Equity at Premium to Market
IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the
'Company'), the African focussed minerals exploration company, is
pleased to announce that it has now entered into an agreement with
Major Star 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.
HIGHLIGHTS:
Ø Acquisition of the Bodite and Bianouan Gold licenses in return
for the issue of 1,550,388 shares in IronRidge at 18 pence per
share; an issue price which is at a significant premium to the
current share price.
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:
o 12m @ 5.87g/t gold from 10m, including 2m @ 33.8g/t gold;
o 8m @ 1.29g/t gold from 8m, including 2m @ 3.17g/t gold;
o 1m @ 3.13g/t Au from 32m at end of hole.
Ø Further endorsement of IronRidge's vision and strategy by
Major Star, through the voluntary Lock In of their IronRidge stock
for 12 months.
Ø IronRidge team to advance the licenses and future growth
strategies.
Ø Streamlined operations with continuity and structure for
future growth.
Figures and Tables referred to in this release can be viewed in
the PDF version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/6018E_1-2020-3-2.pdf
Commenting on the Company's latest progress, Vincent Mascolo,
Chief Executive Officer of IronRidge, said:
"Identifying acquisition opportunities that are attractive for
the Company and its shareholders remains a key priority for our
business. We are therefore delighted to have completed these
significant acquisitions ahead of schedule, and for an issue of
scrip priced at a significant premium to the prevailing market.
"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 acquisitions are 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 and
development of world-class assets.
"We are very pleased with the work programmes completed to date
and look forward to keeping shareholders and investors updated as
more news becomes available."
Details of Acquisition
The Company announced on 28 March 2017 that it had entered into
earn-in arrangement Major Star, under which IronRidge had rights to
acquire 100% of the projects with Major Star maintaining a residual
NSR of 2.5% of which 40% can be acquired for US$2.5m at any
time.
The consideration and transfer of full ownership of the Bodite
and Bianouan Gold licenses collectively is in return for the issue
of 1,550,388 depositary interests of no par value each ("Ordinary
Shares" or the "IronRidge Shares") in IronRidge priced at 18 pence
per share. Completion of this acquisition is subject to Ministerial
approvals. The shares will be issued and allotted following the
completion of the approval and transfer processes. The issue of
1,550,388 IronRidge shares will equate to a 0.46% interest in the
enlarged issued share capital of IronRidge. A further announcement
will be made upon completion of the regulatory approval process for
the acquisition of the Bodite and Bianouan licenses from Major Star
detailing the issue of shares.
The acquisition of Bodite and Bianouan supersedes the Company's
previous investment and earn-in arrangements with Major Star, 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").
Ownership of the two licenses provides IronRidge with access to
exclusive rights to an extensive tenure which complements its
Zaranou license in Côte d'Ivoire (refer Figure 1 ).
Project Background
The Company previously completed soils, auger, trenching and an
air core (AC) drilling over the Bianouan and Bodite licenses (refer
to RNS 19 September 2019 and 1 July 2019) . The results of the AC
drilling programme delivered high-grade gold intersections,
confirming the prospectivity of the licenses.
High-grade AC drilling results including 12m @ 5.87g/t gold from
10m (including 2m @ 33.8g/t gold), 8m @ 1.29g/t gold from 8m
(including 2m @ 3.17g/t gold) and 1m @ 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 @ 0.3g/t (including 2m @
0.59g/t gold) from 12m and 22m @ 0.21g/t gold from surface. Results
also returned narrow higher-grade intervals including 2m @ 9.01g/t
gold from 32m, 2m @ 2.74g/t gold from 14m.
Issue of Equity
As outlined above, upon completion of the regulatory approval
process for the acquisition of the Bodite and Bianouan licenses
from Major Star, IronRidge will allot and issue collectively
1,550,388 Ordinary Shares at a price of 18p to Major Star
shareholders.
Application will then be made to the London Stock Exchange for
the Ordinary Shares to be admitted to trading on AIM. A further
announcement will be made upon completion of the regulatory
approval process for the acquisition of the Bodite and Bianouan
licenses from Major Star detailing the issue of shares.
Following the issue of these shares, the Company will have
336,581,772 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.
For any further information please contact:
IronRidge Resources Limited Tel: +61 7 3303 0610
Vincent Mascolo (Chief Executive Officer)
Karl Schlobohm (Company Secretary)
SP Angel Corporate Finance LLP Tel: +4 (0)20 3470 0470
Nominated Adviser
Jeff Keating
Charlie Bouverat
SI Capital Limited Tel: +44 (0) 1483 413
Company Broker 500
Nick Emerson Tel: +44 (0) 207 871 4038
Jon Levinson
Yellow Jersey PR Limited Tel: +44 (0)20 3004 9512
Henry Wilkinson
Dominic BarrettoEmma Becirovic
Competent Person Statement
Information in this report relating to the exploration results
is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc.
Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of
the Australian Institute of Geoscientists who has in excess of 20
years' experience in mineral exploration and is a Qualified Person
under the AIM Rules. Mr Kolff consents to the inclusion of the
information in the form and context in which it appears.
Notes to Editors
IronRidge Resources is an AIM-listed, Africa focussed minerals
exploration company with a lithium pegmatite discovery in Ghana,
extensive grassroots gold portfolio in Cote d'Ivoire and a
potential new gold province discovery in Chad. The Company holds
legacy iron ore assets in Gabon and a bauxite resource in
Australia. IronRidge's strategy is to create and sustain
shareholder value through the discovery and development of
significant and globally demanded commodities.
Ghana
The Company entered into earn-in arrangements with Obotan
Minerals Limited, Merlink Resources Limited, Barari Developments
Limited and Joy Transporters Limited of Ghana, West Africa,
securing the first access rights to acquire the historical
Egyasimanku Hill spodumene rich lithium deposit, estimated to be in
the order of 1.48Mt at 1.67% Li2O and surrounding tenements. The
portfolio covers some 684km2 with the newly discovered Ewoyaa
project including drill intersections of 128m @ 1.21% Li2O from 3m
and 111m @ 1.35% Li2O from 37m, and a further identified 20km
strike of pegmatite vein swarms. The Cape Coast lithium portfolio
in Ghana is an emerging lithium province with a 14.5Mt at 1.31%
Li2O maiden Mineral Resource estimate (reported in accordance with
the JORC Code) in Indicated and Inferred status at the Ewoyaa and
Abonko deposits. The tenure package is also highly prospective for
tin, tantalum, niobium, caesium and gold, which occur as accessory
minerals within the pegmatites and host formations.
Chad
The Company entered into an agreement with Tekton Minerals Pte
Ltd of Singapore concerning its portfolio covering 900km(2) of
highly prospective gold and other mineral projects in Chad, Central
Africa. IronRidge acquired 100% of Tekton including its projects
and team to advance the Dorothe, Echbara, Am Ouchar, Nabagay and
Kalaka licenses, which host multiple, large scale gold projects.
Trenching results at Dorothe, including 84m @ 1.66g/t Au (including
6m @ 5.49g/t & 8m @ 6.23g/t), 4m @ 18.77g/t Au (including 2m @
36.2g/t), 32m @ 2.02g/t Au (including 18m @ 3.22g/t), 24m @ 2.53g/t
Au (including 6m @ 4.1g/t (including 2m @ 6.2g/t) and 2m @
6.14g/t), 14.12g/t Au over 4m, 34.1g/t over 2m and 63.2g/t over 1m,
have defined significant gold mineralised quartz veining zones over
a 3km by 1km area including the steep dipping 'Main Vein' and
shallow dipping 'Sheeted Vein' zones.
Côte d'Ivoire
The Company entered into conditional earn-in arrangements in
Côte d'Ivoire, West Africa; securing access rights to highly
prospective gold mineralised structures and pegmatite occurrences
covering a combined 3,584km(2) and 1,172km(2) area respectively.
The projects are well located within access of an extensive bitumen
road network and along strike from multi-million-ounce gold
projects and mines.
Australia
Monogorilby is prospective for province scale titanium and
bauxite, with an initial maiden resource of 54.9MT of premium DSO
bauxite. Monogorilby is located in central Queensland, within a
short trucking distance of the rail system leading north to the
Port of Bundaberg. It is also located within close proximity of the
active Queensland Rail network heading south towards the Port of
Brisbane.
May Queen is located in Central Queensland within IRR's wholly
owned Monogorilby license package and is highly prospective for
gold. Historic drilling completed during the 1980s intersected
multiple high-grade gold intervals, including 2m @ 73.4 g/t Au
(including 1m at 145g/t), 4m @ 38.8g/t Au (at end of hole) and 3m @
18.9g/t Au, over an approximate 100m strike hosting numerous
parallel vein systems, open to the north-west and south-east.
Gabon
Tchibanga is located in south-western Gabon, in the Nyanga
Province, within 10-60km of the Atlantic coastline. This project
comprises two exploration licenses, Tchibanga and Tchibanga Nord,
which cover a combined area of 3,396km(2) and include over 90km of
prospective lithologies and the historic Mont Pele iron
occurrence.
Belinga Sud is Located in the north east of Gabon in the
Ogooue-Ivindo Province, approximately 400km east of the capital
city of Libreville. IRR's licence lies between the main Belinga
Iron Ore Deposit, believed to be one of the world's largest
untapped reserves of iron ore with an estimated 1bt of iron ore at
a grade >60% Fe, and the route of the Trans Gabonese railway,
which currently carries manganese ore and timber from Franceville
to the Port of Owendo in Libreville.
Corporate
IronRidge made its AIM debut in February 2015, successfully
securing strategic alliances with three international companies:
Assore Limited of South Africa, Sumitomo Corporation of Japan and
DGR Global Limited of Australia. Assore is a high-grade iron,
chrome and manganese mining specialist. Sumitomo Corporation is a
global resources, mining marketing and trading conglomerate. DGR
Global is a project generation and exploration specialist.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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