27 Apr 2021 07:30
27 April 2021
IronRidge Resources Limited
(AIM: IRR)
Oversubscribed Placing raising £12 million
The Board of IronRidge Resources Limited ("IronRidge" or the "Company") is pleased to announce it has raised £12 million before expenses through a subscription for, and placing of, in aggregate, 60,000,000 new ordinary shares (the "Fundraising Shares") in the Company at a price of 20 pence per share (the "Issue Price") (together the "Fundraise"). The Company will primarily utilise these funds towards the development of its lithium and gold projects in Ghana, Côte d'Ivoire and Chad in Africa.
Vincent Mascolo, Chief Executive Officer of IronRidge, said:
"We are delighted by the interest shown in IronRidge by the international equity capital markets and I would like to thank shareholders for their participation in this oversubscribed fundraise.
"Today's news demonstrates, yet again, belief and confidence in the Board's strategy to advance further the Company's gold and lithium portfolio, with a strong focus on the Ewoyaa Lithium Project in Ghana, which we consider to be an industry-leading asset, and the Zaranou Gold Project in Côte d'Ivoire. The £12m raised puts IronRidge in a strong financial position to capitalise upon the opportunities that it has created itself, particularly as the Company assesses its options to fast track Ewoyaa to production.
"With the modern world embarking on a race towards electrification and de-carbonisation, demand for lithium, due to its use in the stored energy space, is skyrocketing. Concurrently, the global pandemic, and its effect on global economies, has provided a bullish backdrop for gold.
"We believe that there is no better time to be a diversified explorer and developer with an advanced high-grade lithium pegmatite project heading towards production in Ghana and a portfolio of prospective gold projects in Cote d'Ivoire and Chad. We look forward to a transformational year ahead with significant news flow."
Details of the Subscription and Oversubscribed Placing
Binding commitments to subscribe (the "Subscription") for a total of 14,950,000 new ordinary shares (the "Subscription Shares") at the Issue Price have been received from Assore Limited (the Company's largest shareholder), Vincent Mascolo (the Company's Chief Executive Officer), Neil Herbert, (the Company's Non-Executive Chairman) and other subscribers. In addition to the Subscription, the Company has also placed (the "Placing") 45,050,000 new ordinary shares (the "Placing Shares") at the Issue Price with a number of placees.
Grant of Adviser Warrants
In connection with the Fundraise, the company has also agreed to grant warrants over 1,351,500 new ordinary shares to the Company's various advisers that have assisted with the Fundraise ("Adviser Warrants"). The Adviser Warrants have an exercise price of 30 pence per new ordinary share and a life to expiry of 12 months from admission of the Fundraising Shares to trading on AIM. The Company's broker SI Capital and, separately, Turner Pope Investments acted as Placing Agents in the Fundraise.
The Subscription Shares and the Placing Shares have been allotted and issued conditional, inter alia, on their admission to trading on AIM.
An application has been made to the London Stock Exchange for the 14,950,000 Subscription Shares and the 45,050,000 Placing Shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings in the Placing Shares and Subscription Shares are expected to commence at 8:00 a.m. on or around 04 May 2021 ("Admission").
Following the issue of the Placing Shares and Subscription Shares, the Company's total issued share capital will comprise 513,074,334 ordinary shares. In accordance with FCA Disclosure Guidance and Transparency Rules ("DTRs"), the Company has 513,074,334 ordinary Shares in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in Treasury.
Use of proceeds
It is intended that the proceeds of the Placing will primarily contribute to:
· Delivering an updated Scoping Study and pre-feasibility study ("PFS") for the Ewoyaa Lithium Project ("ELP") in Ghana, including 30,000m of resource and exploration drilling, metallurgical test work, engineering studies and environmental and social studies.
· Delivering a maiden mineral resource estimate and ongoing drill testing of exploration targets at the Zaranou Gold Project in Côte d'Ivoire.
· Ongoing development of the Company's pipeline of prospective gold projects in Côte d'Ivoire and Chad, including exploration drilling programmes.
· Ongoing working capital, including costs associated with the Fundraise.
Related party transaction
The subscription by each of Assore Limited, Vincent Mascolo and Neil Herbert constitute related party transactions under AIM Rule 13 of the AIM Rules for Companies. With the exception of Vincent Mascolo, Kieran Daly and Christelle van der Merwe (both nominees of Assore Limited) and Neil Herbert, the Company's directors consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Revised shareholdings following Admission
Following the issue of the Subscription and Placing Shares, the revised shareholdings of the following substantial shareholders and participating Directors will be as follows:
| Current Shareholding | Subscription Shares | Shareholding on Admission | Percentage of enlarged issued share capital |
Assore Limited | 105,816,667 | 14,200,000 | 120,016,667 | 23.39% |
DGR Global Limited | 73,022,667 | Nil | 73,022,667 | 14.17% |
Sumitomo Corporation | 31,793,568 | Nil | 31,793,568 | 6.17% |
Vincent Mascolo | 15,700,000 | 100,000 | 15,800,000 | 3.08% |
Cambrian Limited* | 2,215,715 | 100,000 | 2,315,715 | 0.45% |
\* The beneficial owners of which are Neil Herbert and his wife.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM:
1. | Details of the person discharging managerial responsibilities/person closely associated | |||||
a) | Name: | 1. Vincent Mascolo 2. Neil Herbert
| ||||
2. | Reason for the notification | |||||
a) | Position/status: | 1. Chief Executive Officer 2. Non-executive Chairman
| ||||
b) | Initial notification/Amendment: | Initial notification
| ||||
3. | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
a) | Name: | IronRidge Resources Limited | ||||
b) | LEI: | 213800H1JY3J7BB6BN06 | ||||
4. | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted. | |||||
a) | Description of the financial instrument, type of instrument: Identification code: | Depositary Interests of no par value ISIN: AU0000XINEX3 | ||||
b) | Nature of the transaction: | Issue of ordinary shares for Subscription in private placement | ||||
c) | Price(s) and volume(s): |
| ||||
d) | Aggregated information: Aggregated volume: Price: | Single transaction as in 4 c) above
| ||||
e) | Date of the transaction: | 1. 27 April 2021 2. 27 April 2021 1. 08.00 GMT 2. 08.00 GMT | ||||
f) | Place of the transaction: | Outside of a trading venue | ||||
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For any further information please contact:
|
| |||
IronRidge Resources Limited Vincent Mascolo (Chief Executive Officer) Amanda Harsas (Company Secretary) www.ironridgeresources.com.au | Tel: +61 2 8072 0640 | |||
|
| |||
SP Angel Corporate Finance LLP Nominated Adviser Jeff Keating Charlie Bouverat | Tel: +44 (0)20 3470 0470 | |||
|
| |||
SI Capital Limited Company Broker Nick Emerson Jon Levinson | Tel: +44 (0) 1483 413 500 Tel: +44 (0) 207 871 4038 | |||
|
| |||
Yellow Jersey PR Limited Henry Wilkinson
| Tel: +44 (0)20 3004 9512 | |||
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 Côte 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 3,584km2 and 1,172km2 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 at 6.44g/t gold from 132m, 6m at 15.11g/t gold from 26m, 4m at 5.16g/t gold from 110m and 22m at 3.39g/t gold from 8m within a broader 47km long gold anomalous structure.
Ghana
The Cape Coast Lithium portfolio covers some 684km2 and includes the newly discovered Ewoyaa Lithium Project with a maiden Mineral Resource estimate of 14.5Mt at 1.31% Li2O in the inferred and indicated category including 4.5Mt at 1.39% Li2O in the indicated category (reported in accordance with the JORC Code). 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% Li2O 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 746km2 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 at 1.66g/t Au (including 6m at 5.49g/t & 8m at 6.23g/t), 4m at 18.77g/t Au (including 2m at 36.2g/t), 32m at 2.02g/t Au (including 18m at 3.22g/t), 24m at 2.53g/t Au (including 6m at 4.1g/t (including 2m at 6.2g/t) and 2m at 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 3,396km2 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.