Aim-listed IronRidge Resources has completed the sale of its noncore May Queen gold project, in south-east Queensland, to Australia-focussed gold explorer Australasian Gold.
IronRidge says this will enable it to maintain focus on its core African portfolio.
IronRidge will receive 4.5-million shares representing 28.1% of the enlarged share capital of Australasian Gold, with IronRidge to invest A$100 000 to provide Australasian Gold with additional working capital.
IronRidge will hold an initial 5.5-million shares in Australasian Gold 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 Australasian Gold board.
Australasian Gold has a prospective gold project within the proven Ashburton region of Western Australia. Australasian Gold is currently working towards an initial public offering on a reputable exchange.
“We are pleased to be partnering with Australasian Gold on the divestment of our noncore May Queen gold project. The divestment provides IronRidge with significant project upside through exploration success, to be led by Australasian Gold, while allowing the company to intensify capital focus and managerial momentum on our core suite of gold and lithium assets in Africa.
“Australasian Gold 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,” says IronRidge CEO Vincent Mascolo.
He notes that the board is confident that Australasian Gold will deliver further success at May Queen through targeted exploration.