IronRidge to fast-track gold demerger ahead of Atlantic Lithium name change

AIM-listed explorer IronRidge Resources has secured Canaccord Genuity as underwriter for a rights issue proposed as part of the planned spin-out of its gold assets across West Africa.

The move is expected to fast-track the demerger of its gold assets, which will be spun out into newly created unlisted vehicle Ricca Resources, subject to shareholder approval at the AGM on 18 November.

Following the demerger, IronRidge will change its name to Atlantic Lithium. The rebrand, which was announced last week, will crystallise the company’s sole focus on the Ewoyaa lithium project near the city of Cape Coast in Ghana.

In a statement, IronRidge said Canaccord will fully underwrite the Ricca rights issue, which will enable the demerger to be completed by 22 December 2021. “Canaccord’s commitment allows us to fast-track the demerger in preparation for a fresh start to activity on the ground in 2022,” said IronRidge CEO Vincent Mascolo.

“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.”

IronRidge will not retain any interest in Ricca following the proposed transaction.