Aim-listed IronRidge Resources intends to progress with the restructuring of the company’s Cape Coast lithium portfolio and a demerger of the company’s gold assets in Côte d'Ivoire and Chad into a new gold-focused entity, NewGoldCo, which will be structured to permit quotation on a recognised stock exchange.
IronRidge says the creation of the new entity will help to fully realise value for shareholders, as it will deliver shareholders an investment in two companies, each delivering a clear focus on lithium or gold.
The Cape Coast lithium portfolio is being restructured following an outstanding scoping study, which confirmed the Ewoyaa lithium project as an industry stand-out lithium asset.
While it is in the intention of IronRidge to progress with a demerger of the company's gold assets, the company says there “will be a number of steps and conditions that will need to be addressed” as part of finalising the demerger structure and that there can be no guarantee that the demerger will complete.
IronRidge CEO Vincent Mascolo, however, comments that the proposed demerger is part of the growth strategy for IronRidge, and that the announcement thereof “represents a truly unique opportunity for shareholders to benefit from upside in two distinct and diversified companies at an opportune time for gold and lithium, respectively”.
"The board expects that today's vision can unlock significant shareholder value, help mitigate commodity risk as well as enable the Board to operate with greater efficacies and focus to capitalise on two highly compelling commodity markets," he concludes.