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IronRidge Resources agrees sale of May Queen gold project

Published by
Global Mining Review,


IronRidge Resources Ltd, an African focused minerals exploration company, has announced it has entered into a binding agreement with Australasian Gold Ltd (AGL) for the sale of the company's non-core May Queen gold project in South East Queensland, Australia.

AGL is a public unlisted company established in 2018 and is operated by an experienced geological team. AGL holds an additional prospective gold exploration license in the Ashburton region of Western Australia, within 30 km of the Paulsens gold deposit (207 000 oz Au, JORC compliant) held by Northern Star Resources Ltd.

Highlights:

  • IronRidge to sell its non-core May Queen gold project in Western Australia, allowing it to maintain focus across its core African portfolio.
  • IronRidge to receive 4.5 million shares representing 34.6% of the enlarged share capital of AGL with IronRidge to invest AUS$100 000 at 10 c per share to provide AGL with additional working capital.
  • IronRidge to hold an initial 5.5 million shares in AGL (39.3%) on completion of the transaction.
  • IronRidge maintains both top-up rights as well as the option of a future seat on the AGL Board.
  • AGL is an Australian focused gold explorer with a prospective gold project within the proven Ashburton region of Western Australia and within 30 km of the 207 000 oz Au Paulsens gold deposit (JORC compliant), with the intention to list the company on a reputable exchange.

Commenting, Vincent Mascolo, CEO of IronRidge, said: "We are pleased to be partnering with AGL on the divestment of our non-core May Queen gold project in South East Queensland, Australia. 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.

"AGL have 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 bring to the ongoing 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."

Divestment terms:

IronRidge is to sell its May Queen gold exploration project in Australia to AGL. Under the terms of this divestment, subject to ministerial sign off, IronRidge will:

  • Receive 4.5 million shares in AGL for the May Queen gold project.
  • Invest AUS$100 000 at 10 c in AGL to provide additional working capital.
  • Hold an initial 5.5 million shares in AGL post the transaction (39.3% of AGL) pre-IPO.
  • Have the right to a future Board position in AGL (whilst a shareholding of greater than 10% is maintained).
  • Maintain top-up rights.

The company will provide confirmation of the transaction once Ministerial approval has been obtained.

Read the article online at: https://www.globalminingreview.com/finance-business/14092020/ironridge-resources-agrees-sale-of-may-queen-gold-project/

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Australian mining news Gold mining news