IronRidge raises for gold and lithium projects

BRISBANE-based, AIM-listed IronRidge Resources has raised £12 million from an oversubscribed fundraising round, which the company said will allow it to push ahead with a prefeasibility study on its Ewoyaa lithium project in Ghana and deliver a maiden resource estimate for its Zaranou gold project in Cote d'Ivoire.
IronRidge raises for gold and lithium projects IronRidge raises for gold and lithium projects IronRidge raises for gold and lithium projects IronRidge raises for gold and lithium projects IronRidge raises for gold and lithium projects

IronRidge Resources' Ewoyaa lithium project located in Ghana

Staff reporter

The subscription and oversubscribed placement saw 60 million shares offered at 20p per share. 

Mining holding company Assore - IronRidge's largest shareholder - along with IronRidge chief executive, Vincent Mascolo and non-executive chairman, Neil Herbert, took part in the raising, acquiring just under 15 million shares between them with the remaining 45 million purchased by "a number of placees", the company said.

Major shareholder, ASX-listed DGR Global, did not participate in the offer, but is expected to hold 14.2% of the company post-raising.

IronRidge also granted 1.3 million share warrants at 30p per share to several advisers that assisted with the raising. Company broker SI Capital and Turner Pope Investments acted as placing agents.
 
The funds will allow the junior to carry out a PFS and an updated scoping study on Ewoyaa, including 30,000m of resource and exploration drilling, metallurgical testing, engineering and environmental studies at the site, IronRidge said. 
 
The resource for Zaranou will be accompanied by ongoing drill testing.
 
IronRidge said the funds would also fund further exploration in Cote d'Ivoire and Chad, although the security situation in Chad appears to be deteriorating rapidly following the unexpected death of president Idriss Deby last week.
 
The funds will also be used for ongoing working capital purposes.
 
Shares in IronRidge have doubled in value since the beginning of 2020 and are currently changing hands for 20.7p, valuing the company at £93.9 million.