DGR Global announced on Thursday that Australia-based explorer IronRidge Resources, in which DGR currently holds a 44.5% interest, has entered into a conditional agreement with Sumitomo Corporation to further cornerstone the IronRidge IPO and listing of IronRidge on the AIM market of the London Stock Exchange their explanation.
Sumitomo Corporation plans to invest approximately £2.6-million into IronRidge Resources, which currently holds subject to the final size of the IPO capital raising.
This equates to 10p per share or a shareholding of between 10.3% and 11.7% of IronRidge’s total issued share capital.
The Sumitomo Investment will complement JSE-listed mining holding company Assore’s conditional commitment of £6.7-million announced by DGR in early December 2014, to provide a total cornerstone commitment of £9.3-million at 10p per share, as part of the IPO IronRidge may raise up to £12.54-million.
Sumitomo holds a 49% interest in Oresteel Investments and Oresteel in turn holds a 52.43% interest in Assore. Accordingly Sumitomo will in addition to its direct investment interest in IronRidge, hold a relevant interest in Assore’s shares in IronRidge. Sumitomo’s undiluted total actual and deemed relevant interest in IronRidge will, following the IPO, be between a minimum of 37.5% and 43% which will require shareholder approval.
Sumitomo’s subscription is also subject to, and conditional on, approval by shareholders of IronRidge in general meeting, completion of the minimum-sized IPO capital raising and AIM listing in accordance with a completed and an agreed AIM admission document by March 31, 2015.
Commenting on the Sumitomo IronRidge agreement, DGR Global CEO and IronRidge executive chairman Nick Mather says DGR is pleased that IronRidge has entered this milestone agreement with Sumitomo.
“Apart from securing a further strong cornerstone investor in addition to Assore for the IPO, this deal sets IronRidge apart from other junior iron explorers in Africa,” he said in a statement.
Mather also said that, subject to completion of the IPO and listing on AIM, the deal with Sumitomo and Assore will equip IronRidge with support, subject to exploration and ongoing technical success, through the evolution of IronRidge from explorer to developer which is where we want to go. The Agreements with IronRidge are strong endorsements for the DGR business model and the entire management and exploration team responsible for the generation of the company.