South African based mining company Assore has conditionally agreed to an interest of up to 30.3% of IronRidge, the Australian based exploration company with extensive iron ore activity in Gabon.
Assore is committed to this investment in IronRidge as it forms an important component of Assore’s objectives to evaluate, secure and develop long-term, value enhancing, strategic investments on the African continent and elsewhere.
IronRidge holds three prospecting licenses in Gabon, covering approximately 5,352km2, the exploitation of which could potentially create world class iron ore mining projects.
Two Conditions on the agreement
One of the conditions of the share agreement is that IronRidge must list on the Alternative Investment Market of the London Stock Exchange plc (AIM). IronRidge is set to do this in January 2015. Depending on the amount of equity raised by IronRidge, the agreement will result in Assore holding between 26.7% and 30.3% of IronRidge, for a consideration of GBP6.98 million. A second condition is that the Iron Ridge shareholders must agree to the agreement at a general meeting expected to be held in Australia in early January 2015.
These opportunities are early-stage. The board of directors of Assore, however, believes in the long-term potential of IronRidge. Assore’s interest in the company offers it exposure to some of West Africa’s most promising iron ore opportunities and could facilitate Assore’s long-term access to high grade iron ore with competitive capital and operating costs.
There had been an interest in IronRidge from African Rainbow Minerals jointly with Assore and Assmang Industries in April 2014. Assmang decided not to pursue the opportunity and Assore decided to increase the share agreement on its own.