TIDMIRR
RNS Number : 9867N
IronRidge Resources Limited
04 February 2021
4 February 2021
Completion of Acquisition of Joy Transporters Ltd.
Saltpond and Cape Coast
Lithium Licenses, Ghana
Issue of Equity
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 (the
"Acquisition") of 100% of the share capital of Joy Transporters Ltd
("Joy Transporters"), providing IronRidge full ownership of the
highly prospective Saltpond license and Cape Coast application in
Ghana ("the Saltpond and Cape Coast portfolio") (refer RNS of 12
March 2020 ).
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 pegmatite targets
adjacent to the Company's Ewoyaa Lithium Project with a JORC 2012
compliant maiden Mineral Resource Estimate of 14.5Mt at 1.31% Li(2)
O .
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/9867N_1-2021-2-4.pdf
HIGHLIGHTS:
Ø The Acquisition of Joy Transporters is in return for the issue
of 2, 360,035 shares in IronRidge.
Ø Former shareholders of Joy Transporters further endorse the
IronRidge vision through the Lock In of their IronRidge Shares for
12 months.
Ø 12,500m reverse circulation ("RC") drilling programme
currently underway to grow the resource, including exploration
drilling of two pegmatite targets within the Saltpond license.
Ø Long-lead baseline environmental, social studies and
monitoring ongoing.
Ø Ideal infrastructure support; projects located 110km from the
operating Takoradi deep-sea port, within 1km of the sealed bitumen
Takoradi - Accra highway and adjacent to high-power transmission
lines.
Ø Highly supportive government with a long 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.
Commenting on the Company's latest progress, Vincent Mascolo,
Chief Executive Officer of IronRidge, said:
"We are delighted to have completed this significant
acquisition, providing IronRidge full ownership of the highly
prospective Saltpond license and Cape Coast application in Ghana.
This extensive tenure package is adjacent to the Company's flagship
Ewoyaa Lithium Project where, in January 2021, we announced results
of a Scoping Study supporting a business case for a 2.0 Million
tonnes per annum production operation, producing an average
295,000tpa of 6% Li(2) O spodumene concentrate, with life of mine
revenues exceeding US$1.55 Billion.
"The Acquisition is part of the Company's strategic plan in the
region, providing valuable synergies with IronRidge's existing
portfolio and team, as well as its growth strategy of creating and
sustaining shareholder value through the discovery of fundamentally
robust lithium projects at a time when demand for lithium is
increasing significantly.
"The exploration RC drilling programme currently underway is
progressing well and we look forward to keeping shareholders
updated with our progress."
Details of the 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.
Completion of the acquisition was subject to regulatory and
ministerial approvals which have now been received.
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.
The issue of 2, 360,035 IronRidge shares equates to a 0.56%
interest in the enlarged share capital of IronRidge.
The Acquisition 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") from the date of
admission.
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 Lithium Project with a maiden Mineral Resource
Estimate of 14.5Mt at 1.31% Li(2) O, within the broader Cape Coast
Lithium Portfolio in Ghana, West Africa ( refer to Figure 1).
Project Update
The 12,500m resource and exploration RC drilling programme
currently underway is progressing well with over 16 holes completed
at the Anokyi target adjacent to the resource footprint and visible
spodumene observed within 13 holes to date. The current programme
also includes exploration RC drilling of the Ndasiman and Amoanda
pegmatite targets within the Saltpond license (refer RNS of 14
January 2021 ).
Issue of Equity & Total Voting Rights
As outlined above, and as a result of the finalisation of the
acquisition of Joy Transporters, IronRidge will proceed to allot 2,
360,035 fully paid Ordinary Shares to the former shareholders of
Joy Transporters.
Application will be made for the 2,360,035 Ordinary Shares to be
admitted to trading on AIM and admission is expected to take place
on or around 10 February 2021 ("Admission"). On Admission of the
2,360,035 Ordinary Shares to trading the issued share capital of
the Company will comprise 421,271,495 Ordinary Shares. When
calculating voting rights, shareholders should use this figure as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change in
their interest in, the share capital of the Company.
The Board is delighted with the progress that the Company has
made in 2021 to date and looks forward to keeping shareholders
updated as further news becomes available.
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 2 8072 0640
Vincent Mascolo (Chief Executive Officer)
Amanda Harsas (Company Secretary)
www.ironridgeresources.com.au
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 BarrettoMatthew McHale
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.
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. The Company's most advanced project is the
Zaranou gold project which includes high-grade gold drilling
intersections along 8km strike including 6m @ 6.44g/t gold from
132m, 6m @ 15.11g/t gold from 26m, 4m @ 5.16g/t gold from 110m and
22m @ 3.39g/t gold from 8m within a broader 47km long gold
anomalous structure.
Ghana
The Cape Coast Lithium portfolio covers some 684km(2) and
includes the newly discovered Ewoyaa Lithium Project with a maiden
Mineral Resource estimate of 14.5Mt at 1.31% Li(2) O in the
inferred and indicated category including 4.5Mt @ 1.39% Li(2) O in
the indicated category (reported in accordance with the JORC Code).
A Scoping Study on the Ewoyaa Lithium Project, announced in January
2021, supports a business case for a 2.0 Million tonnes per annum
production operation, producing an average 295,000tpa of 6% Li(2) O
spodumene concentrate, with life of mine revenues exceeding US$1.55
Billion. 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% Li(2) O and surrounding tenements. The
tenure package is also 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 746.25km(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.
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.
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.
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