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IronRidge Resources raises funds to advance development of gold and lithium projects

Published: 09:10 27 Apr 2021 BST

IronRidge Resources Ltd - IronRidge Resources raises funds to advance development of gold and lithium projects

IronRidge Resources Limited (LON:IRR) said it raised £12mln in an oversubscribed fundraising to help bankroll the development of its lithium and gold projects in the African nations of Ghana, Côte d'Ivoire and Chad.

The company raised the funds through the subscription and placing of 60mln new shares at a price of 20p each, a 6.3% discount to its closing price on Monday.

WATCH: IronRidge Resources' says 'if we continue to hit impressive results, we'll just keep on expanding'

The company added it also agreed to grant warrants over 1.35mln new shares to the company's various advisers that have assisted with the effort.

The proceeds will primarily contribute to delivering an updated scoping study and pre-feasibility study for the Ewoyaa lithium project in Ghana, as well as a maiden mineral resource estimate and ongoing drill testing at the Zaranou gold project in Côte d'Ivoire and the development of its pipeline of prospective gold projects in Côte d'Ivoire and Chad.

"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 £12mln 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”, IronRidge chief executive Vincent Mascolo said in a statement.

"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", he added.

Shares in the company were 1.9% lower at 21p in early deals on Tuesday.

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