IronRidge Resources Limited, (AIM: IRR), the African focussed minerals exploration company, has completed the sale of the Company’s non-core May Queen gold project in South East Queensland, Australia, to Australasian Gold Limited (“AGL”).
Highlights
– IronRidge completes the sale of its non-core May Queen gold project in South East Queensland, allowing it to maintain focus across its core African portfolio.
– IronRidge to receive 4.5m shares representing 28.1% of the enlarged share capital of AGL with IronRidge to invest AUD$100,000 at 10 cents per share to provide AGL with additional working capital.
– IronRidge to hold an initial 5.5m shares in AGL representing 32.3% of the enlarged capital on completion of the transaction
– IronRidge maintains both top-up rights as well as the option of a future seat on the AGL Board.
– AGL is an Australian focussed gold explorer with a prospective gold project within the proven Ashburton region of Western Australia and within 30km of the 207,000 oz Au Paulsens gold deposit (JORC compliant) and Mt Clermont Queensland. AGL is currently working towards an IPO on a reputable exchange.
Commenting, Vincent Mascolo, Chief Executive Officer of IronRidge, said: “We are pleased to be partnering with AGL on the divestment of our non-core May Queen gold project in South East Queensland, Australia. The divestment provides IronRidge with significant project upside through exploration success, to be led by AGL, whilst allowing the Company to intensify capital focus and managerial momentum on our core suite of gold and lithium assets in Africa.
“AGL has demonstrated considerable experience in gold exploration to date, in addition to holding a prospective gold project in Western Australia; providing IronRidge with additional upside from their existing portfolio and the expertise they bring to the ongoing advancement of the May Queen project.
“The Board is confident that AGL will deliver further success at May Queen through targeted exploration and we look forward to keeping the market updated as results become available.”
Divestment terms
IronRidge is to sell its May Queen gold exploration project in Australia to AGL. Under the terms of this divestment, subject to ministerial sign off, IronRidge will:
– Receive 4.5m in AGL for the May Queen gold project.
– Invest AUD$100,000 at 10c in AGL to provide additional working capital.
– Hold an initial 5.5m shares in AGL post the transaction and pre-IPO.
– Have the right to a future Board position in AGL (whilst a shareholding of greater than 10% is maintained).
– Maintain top-up rights.
About AGL
AGL is a public unlisted Australian domiciled company, established in 2018. AGL is managed by an experienced geological team and holds the prospective Fairew gold project in the Ashburton region of Western Australia, within 30km of the operating Paulsens gold deposit, held by Northern Star Resources Limited, which has a JORC compliant total resource of 207,000 oz Au. Once the May Queen acquisition is completed, AGL intends to explore various opportunities for the public trading of its shares on a recognised exchange.
About May Queen
May Queen is located in South East Queensland and is prospective for gold. Historic drilling completed during the 1980s intersected multiple high-grade gold intervals, including 2m @ 73.4 g/t Au (including 1m at 145g/t), 4m @ 38.8g/t Au (at end of hole) and 3m @ 18.9g/t Au, over an approximate 100m strike hosting numerous parallel vein systems, open to the north-west and south-east.