12th Mar 2020 15:02
(Alliance News) - IronRidge Resources Ltd on Thursday said it will acquire a highly prospective lithium exploration portfolio in Ghana in a stock deal worth GBP531,007, in line with the company's growth strategy.
The Africa-focused mineral explorer has agreed to acquire Joy Transporters Ltd, giving the company full ownership of the Saltpond and Cape Coast lithium portfolio.
"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 14.5 million tonnes at 1.31% Li2O, within the broader Cape Coast lithium portfolio in Ghana, West Africa," IronRidge said.
The deal consideration comprises issue of 2.4 million IronRidge shares at 22.5 pence each. The stock was trading 5.2% lower at 11.85 pence each in London on Thursday afternoon.
In January, the company had entered into an earn-in arrangement with Joy Transporters, under which IronRidge had earn-in rights to acquire 100% of the projects. Joy Transporters will keep a residual net smelter royalty of 2.5%, of which 50% can be acquired by IronRidge for USD3 million at any time.
IronRidge Chief Executive Vincent Mascolo said: "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."
By Tapan Panchal; [email protected]
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