IronRidge Resources Ltd (AIM:IRR) will hold its annual general meeting on 18 November in Sydney, ahead of the proposed demerger of the company’s gold assets and a change of name to Atlantic Lithium Limited (AIM:ALL).
"The last 12 months has been the strongest performing period on record in the company's history and the upcoming AGM will set a new marker,” said IronRidge chief executive Vincent Mascolo.
The company proposes to demerge the gold into newly created unlisted vehicle Ricca Resources Limited.
"The proposed demerger of IronRidge's gold assets follows on from IronRidge's July statement regarding the company's agreement with Piedmont Lithium Inc (ASX:PLL, NASDAQ:PLL, XETRA:), a Nasdaq-listed lithium exploration and development company, to fully fund and fast track the Ewoyaa lithium project, part of the company's Ghanaian Cape Coast Lithium Portfolio, to production,” said Mascolo.
The proposed demerger of the gold assets is subject to shareholder approval in Resolution 1 at the annual meeting. Ricca is to receive an initial cash subscription of A$7mln.
Eligible IronRidge shareholders will receive an in-specie distribution of one Ricca share for every eight IronRidge shares held.
Eligible IRR shareholders will also receive a priority offer to participate in a pro rata rights issue that will be undertaken by Ricca to raise a further A$7.1mln at A$0.10 cents per share.
IronRidge will not retain any interest in Ricca following the proposed transaction.
Post the proposed demerger, IronRidge will maintain a strong cash position of around US$22mln.