IronRidge Resources has announced that Canaccord Genuity, the Lead Manager of the proposed rights issue to be undertaken by Ricca Resources the entity into which the Company’s gold assets will be transferred and subsequently demerged, has been secured as underwriter of the proposed rights issue.
The full details of the demerger and resolution to be put to the Company’ shareholders are set out in the Notice of Meeting and Explanatory Memorandum, dated and announced on 26 October 2021.
As set out in the Notice of Meeting, subject to satisfaction of the demerger conditions:
- Ricca will receive an initial start-up capital injection of A$7 million 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 8 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$7.2 million 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$7.2 million Ricca Rights Issue enabling the Company to fast-track the demerger by almost one (1) month.
Commenting, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“Canaccord’s commitment allows us to fast track the demerger in preparation for a fresh start to activity on the ground in 2022. 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.”