IronRidge Resources, an Africa-focused minerals exploration company, has announced that it has secured £12 million (nearly USD 17 million) via a subscription for and the placement of, in total 60,000,000 new stakes in the Company priced at 20 pence per share.
Reportedly, mining holding giant Assore, IronRidge’s largest stakeholder along with the company’s CEO- Vincent Mascolo, and non-executive chairman- Neil Herbert were a part of the transaction. It is worth mentioning that IronRidge has also granted 1.3 million share warrants at 30p per share to various advisers who helped in the raising.
With this recent development, the company will use the fresh funds to develop its lithium and gold projects in Ghana, Chad, and Côte d’Ivoire in Africa. In addition to the above, the investment will also be used for any ongoing working capital purposes.
According to a statement by Vincent Mascolo, the latest investment showcases and belief and strategy to advance the firm’s lithium and gold portfolio with a key focus on the Zaranou Gold Project in Côte d’Ivoire and the Ewoyaa Lithium Project in Ghana.
Mascolo further mentioned that the raised USD 14.5 million will put the company in a strong financial position to capitalize on various opportunities, especially the need to fast-track the proposed Ewoyaa project to production.
Moreover, with the world working towards electrification and reducing its carbon dependence, the need for lithium owing to its use in the stored energy space is rapidly increasing. The ongoing pandemic has largely affected various economies of the world, offering a bullish backdrop for gold.
Citing sources, the shares of IronRidge have grown multiple folds in terms of value since the beginning of 2020 and is at present changing hands for 20.7p, valuing the entity at USD 131 million or £93.9 million.