IronRidge Resources Limited (AIM: IRR) has revealed that Canaccord Genuity (Australia) has been secured as underwriter of the proposed rights issue to be undertaken by Ricca Resources Limited the entity into which the vompany’s gold assets will be transferred and subsequently demerged.
Subject to satisfaction of the demerger conditions:
· Ricca will receive an initial start-up capital injection of A$7m as part of the agreement for the transfer of the gold assets from the Company to Ricca;
· Eligible IronRidge shareholders will receive an in-specie distribution of 1 Ricca Share for every eight IronRidge Shares held at the In-specie Distribution Record Date (which is currently scheduled to be 23 November 2021);
· Eligible IronRidge shareholders will also receive a priority offer to participate in the Ricca Rights Issue to raise a further A$7.2m at A$0.10 cents per Ricca share, with entitlements being determined on the Rights Issue Record Date (currently scheduled to be 23 November 2021); and
· Lead Manager and Underwriter, Canaccord, will fully underwrite the A$7.2m Ricca Rights Issue enabling the Company to fast-track the demerger by almost one (1) month. (
IronRidge CEO, Vincent Mascolo, said that following the implementation of the proposed demerger, and assuming full subscription under the proposed Ricca Rights Issue, Ricca will have a closing cash balance of A$14.2m before costs with an issued capital of 143,436,062 Shares
“Canaccord’s commitment allows us to fast track the demerger in preparation for a fresh start to activity on the ground in 2022,” Mr Mascolo said.
“Significant opportunities exist for Ricca across a broad portfolio of West African gold projects as the precious metals complex looks to be entering a new phase of growth.
“We believe that Ricca offers a new and exciting separate investment opportunity for IronRidge shareholders to capitalise upon this growth. Further updates on the proposed demerger will be provided in coming weeks.”
For further information please visit: https://www.ironridgeresources.com.au/
