IN BRIEF: IronRidge picks Canaccord to underwrite Ricca rights issue

IronRidge Resources Ltd - minerals exploration company with projects in Chad, Ghana and Ivory Coast - Canaccord Genuity Ltd to act as underwriter for proposed rights issue by demerged gold company Ricca Resources Ltd.

Ricca is to receive an initial start-up capital injection of AUD7 million as part of gold assets transfer from IronRidge, while eligible IronRidge shareholders will gain an in-specie distribution of one Ricca share for every eight IronRidge shares.

In addition, shareholders will also be able to take part in Ricca rights issue to raise a further AUD7.2 million at 10 cents per share.

"Canaccord's commitment allows us to fast track the demerger in preparation for a fresh start to activity on the ground in 2022. Significant opportunities exist for Ricca across a broad portfolio of West African gold projects as the precious metals complex looks to be entering a new phase of growth. We believe that Ricca offers a new and exciting separate investment opportunity for IronRidge shareholders to capitalise upon this growth," says Chief Executive Officer Vincent Mascolo.

Current stock price: 21.15 pence, up 3.2% on Tuesday

Year-to-date change: up 69%

By Dayo Laniyan; dayolaniyan@alliancenews.com

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