IronRidge Resources Ltd (LON:IRR) said it plans to demerge its gold assets in Côte d'Ivoire and Chad into a separate gold-focused listed company and hopes that this restructuring will unlock further value in its Cape Coast lithium portfolio.
Following a strategic portfolio review, the board of IronRidge concluded that the Cape Coast lithium portfolio was “materially undervalued” in the company’s current structure and required a distinct, separate focus to release its true value and that the creation of a new gold-focused company, in a robust gold market, was the best way to realise further value for shareholders.
"The proposed demerger is part of the growth strategy for IronRidge, and today's news represents a truly unique opportunity for shareholders to benefit from upside in two distinct and diversified companies at an opportune time for gold and lithium, respectively,” said chief executive Vincent Mascolo.
"The board expects that today's vision can unlock significant shareholder value, help mitigate commodity risk as well as enable the board to operate with greater efficacies and focus to capitalise on two highly compelling commodity markets," he added.
The proposal to split off and list the new gold company on a recognised stock exchange is subject to regulatory and shareholder approvals.
The Cape Coast lithium portfolio includes the Ewoyaa project in Ghana.
In a separate announcement, IronRidge said it had appointed Liberum Capital Ltd as joint broker with immediate effect.