AIM-listed explorer IronRidge Resources has entered into a binding MOU with West Africa-focused exploration drilling contractor GeoDrill for a drilling for equity programme of up to US$4 million, or 40 000 m of drilling.
The deal inked with GeoDrill will enable IronRidge Resource to advance all of its gold and lithium projects across Ghana, Côte d’Ivoire and Chad, whilst maintaining cash resources.
The deal terms state that any drilling services provided by GeoDrill will be paid by either; cash, shares, or a combination of cash and shares on a 50:50 basis at IronRidge’s election and is based on competitive quotation process which provides for the issue of ordinary shares in IronRidge for 50% of the drilling cost up to a value of $4 million in two $2 million stages.
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The MoU also allows for the equity component to be in the form of a six-month convertible loan at IronRidge’s election. The term of the loan will be for six months with an accrued annual interest rate of 8%. At completion of the six-month term, GeoDrill may elect to be paid in shares and/or cash.
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GeoDrill has agreed to a minimum three-month lock in period from the date of issue in respect of all shares issued for each agreed drill programme. This restriction shall not apply to the shares issued in respect of the convertible loan.
The MoU is valid for 24 months and can be terminated by either party within 14 days of formal notification.
Details of current and impending drill programmes
Geodrill has commenced drilling works in Ghana where approximately 13 200 m of drilling has been planned at the Cape Coast lithium project over a staged reverse circulation and diamond drilling programme dependent on results.
IronRidge Resources is currently continuing field mapping and sampling programmes over the Zaranou gold project in Côte d’Ivoire ahead of a planned air-core drill programme.
In Côte d’Ivoire, the company is assessing air-core results over its Bianouan and Bodite licenses to determine the next steps as well as soils and trenching results over its Kineta and Marahui licenses.
At this stage the company will maintain its focus on the Côte d’Ivoire gold portfolio and the Ghana lithium portfolio.