(Sharecast News) - Africa-focussed minerals exploration company IronRidge Resources has entered into a binding agreement with Australasian Gold (AGL) for the sale of its non-core May Queen gold project in South East Queensland, Australia, it announced on Monday.
The AIM-traded firm described AGL as a public unlisted company established in 2018, operated by an "experienced" geological team.
It holds an additional prospective gold exploration licence in the Ashburton region of Western Australia, within 30 kilometres of the Paulsens gold deposit.
IronRidge said selling the non-core May Queen gold project would allow it to maintain focus across its core African portfolio..
It said it would receive 4.5 million shares, representing 34.6% of the enlarged share capital of AGL, with IronRidge to invest AUD 0.1m (£0.06m) at 10 cents per share, to provide AGL with additional working capital.
IronRidge would hold an initial 5.5 million shares in AGL, or 39.3%, on completion of the transaction, while maintaining both top-up rights as well as the option of a future seat on the AGL board.
"We are pleased to be partnering with AGL on the divestment of our non-core May Queen gold project in South East Queensland, Australia," said chief executive officer Vincent Mascolo.
"The divestment provides IronRidge with significant project upside through exploration success by AGL, whilst allowing the company to intensify capital focus and managerial momentum on our core suite of gold and lithium assets in Africa."
Mascolo said AGL had demonstrated experience in gold exploration, in addition to holding a prospective gold project in Western Australia, providing IronRidge with additional upside from their existing portfolio and the expertise they would bring to the advancement of the May Queen project.
"The board is confident that AGL will deliver further exploration success at May Queen through targeted exploration and focus that the project deserves, and we look forward to keeping the market updated as results become available."
At 0808 BST, shares in IronRidge Resources were up 0.95% at 15.8p.
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