IRR.L Share News (IRR)

(Sharecast News) - Africa-focussed minerals exploration company IronRidge Resources has entered into an agreement with Major Star to acquire 100% of its Bodite and Bianouan gold licenses, which would give it full ownership of a "highly prospective" gold exploration portfolio in Côte d'Ivoire.

The AIM-traded firm said it was acquiring the licenses in return for 1,550,388 shares in IronRidge at 18p each - an issue price which was at a "significant" premium to its current share price.

It said previously-reported air core drilling results from the Bianouan license at a 0.15 grams of gold per tonne cut-off with maximum 2m of internal dilution returned high grades, including 12 metres at 5.87 grams of gold per tonne from 10 metres, which itself included tw metres at 33.8 grams of gold per tonne.

IronRidge also highlighted eight metres at 1.29 grams of gold per tonne from eight metre, including two metres at 3.17 grams of gold per tonne, and one metre at 3.13 grams of gold per tonne from 32 metres at end-of-hole.

The board said the transaction was a further endorsement of the company's vision and strategy by Major Star, through the voluntary lock-in of their IronRidge stock for 12 months.

It said the IronRidge team would advance the licenses and their future growth strategies, adding that the licenses were "streamlined operations" with continuity and structure in place for future growth.

"Identifying acquisition opportunities that are attractive for the company and its shareholders remains a key priority for our business," said chief executive officer Vincent Mascolo.

"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."

Mascolo said the acquisitions were in line with the firm's strategic growth plan of creating and developing valuable synergies within its 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."

At 0814 GMT, shares in IronRidge Resources were up 0.22% at 11.65p.