logo-loader
IronRidge Resources Ltd

IronRidge Resources' Gabon projects have potential for high grade iron, says SP Angel

iron_ore_pellets_350_54f82cde408a1.jpg

IronRidge Resources' (LON:IRR) two projects in Gabon have the potential to host high grade iron discoveries, says house broker SP Angel, which has started coverage on the recent AIM float.

The company raised around £9.7mln in fresh capital through the IPO at 10p a share giving the firm a market value of around £23.7mln.

Funds raised will be targeted at drilling at both the firm's Tchibanga and Belinga projects with the former targeting 10,000 metres to obtain a first resource figure, notes analyst John Meyer.

An exploration budget of US$12.8mln has been set to conduct exploration at both Tchibanga and Belinga, he added.

The broker noted that international consultants SRK have assessed the value of the iron ore projects to be US$38.1mln or around £25mln based on a probability model on future cash flows at Tchibanga and Belinga.

Tchibanga is the more advanced property and has the benefit of previous gravity data from exploration work by big cap BHP Billiton (LON:BLT) and is closer to infrastructure, it added.

SP Angel also noted that the depressed iron ore sector gives investors in the firm the chance to benefit from a recovery in prices in the medium term.

Quick facts: IronRidge Resources Ltd

Price: £0.17

Market: AIM
Market Cap: £52.5 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of IronRidge Resources Ltd named herein, including the promotion by the Company of IronRidge Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Argo Blockchain agrees deal to expand electricity supply by...

Headlines from the Proactive UK newsroom. Argo Blockchain (LON:ARB) is to boost its electricity supply by 357% through a deal with a leading Canadian data centre provider. Argo now has access to 64 megawatts of electricity for bitcoin mining. Bacanora Lithium PLC (LON:BCN) has received the...

3 days, 12 hours ago

2 min read