IronRidge adds to lithium portfolio with Joy Transporters acquisition

Africa-focussed mineral exploration company IronRidge Resources has agreed to acquire all of Joy Transporters, giving it full ownership of a “further and highly prospective” lithium exploration portfolio in Ghana.

The AIM-traded firm said the Saltpond and Cape Coast portfolio, which was in line with its vision and growth strategy in Africa, represented a “highly prospective” ground holding with high-priority geological, geochemical and geophysical pegmatite targets adjacent to the company’s existing Ewoyaa Project.

It said the acquisition was in return for the issue of 2,360,035 shares in IronRidge at a price of 22.5p each, representing a significant premium to the current share price.

The board quipped that the former shareholders of Joy Transporters were further endorsing the IronRidge vision, through the lock-in of their IronRidge shares for 12 months.

It said low-cost regional exploration programmes were ongoing throughout the portfolio; including reconnaissance mapping and trenching within the Saltpond license, and grid auger drilling programmes within the Apam East license.

The board said long-lead baseline environmental and social studies and monitoring were also ongoing.

It described “ideal” infrastructure support, with projects located within 90 kilometres of the operating Takoradi deep-sea port, within 110 kilometres of the capital Accra, and adjacent to the sealed bitumen Takoradi-Accra highway and high-power transmission line.

IronRidge also said Ghana had a “highly supportive” government with an “extensive” mining history, a strong diversification drive and supportive renewable and stored energy space initiatives.

It said its team would advance the licenses and future growth strategies with simplified operations, and a structure for future growth.

“We are delighted to have completed this significant acquisition ahead of schedule and at a significant premium to IronRidge's current share price,” said chief executive officer Vincent Mascolo.

“The acquisitions are part of our strategic plan in the region providing valuable synergies with the IronRidge team and its growth strategy of creating and sustaining shareholder value through the discovery of fundamentally robust lithium projects.

“The board is very pleased with the outright acquisitions and looks forward to keeping shareholders and investors updated with exploration progress.”

At 1222 GMT, shares in IronRidge Resources were down 5.22% at 11.85p.