2nd Mar 2020 11:11
(Alliance News) - IronRidge Resources Ltd on Monday announced the purchase of two gold licences in the Ivory Coast in an all-share deal.
IronRidge, which is based in Brisbane, Australia, has bought the Bodite and Bianouan gold licences off Major Star SARL. In March 2017, IronRidge signed an earn-in with Major Star giving it the right to buy the two licences.
The company has issued Major Star 1.6 million new shares at a price of 18 pence each, which IronRidge said is a "significant" premium to its current share price in London. This will give Major Star a 0.5% stake post-acquisition.
IronRidge shares were 3.2% higher on Monday morning in London at 12.00p each.
Results from drilling at Bianouan have returned grades of up to 5.9 grams of gold per tonne of ore over 12 metres, as well as 3.1 grams over one metre.
"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," said IronRidge Chief Executive Vincent Mascolo.
"The Bodite and Bianouan gold licences complement our flagship Zaranou gold licence 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," Mascolo continued.
"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."
As well as gold, IronRidge also has some lithium assets in the Ivory Coast. It also has lithium interests in Ghana, gold in Chad, iron ore in Gabon, and bauxite and gold in Australia.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
IRR.L