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IronRidge Resources (AIM: IRR) has announced that it is divesting from the May Queen gold project in Australia, as it is considered by the company a non-core asset.
In a press release, IronRidge said that to go ahead with this plan it has entered into a binding agreement with Australasian Gold Limited for the sale of May Queen.
Under the terms of the agreement, IronRidge will receive 4.5 million shares representing 34.6% of the enlarged share capital of AGL with IronRidge to invest $100,000 at 10 cents per share to provide AGL with additional working capital. IronRidge will also hold an initial 5.5 million shares in AGL (39.3%) on completion of the transaction and maintain both top-up rights as well as the option of a future seat on the AGL board.
The sale of May Queen will allow IronRidge to focus on its gold and lithium assets in Africa
“We are pleased to be partnering with AGL on the divestment of our non-core May Queen gold project in South East Queensland, Australia. The divestment provides IronRidge with significant project upside through exploration success by AGL, whilst allowing the company to intensify capital focus and managerial momentum on our core suite of gold and lithium assets in Africa,” Vincent Mascolo, IronRidge’s CEO, said in the media brief.
“AGL has demonstrated experience in gold exploration in addition to holding a prospective gold project in Western Australia.”
According to Mascolo, historic drilling completed during the 1980s intersected multiple high-grade gold intervals, including 2m @ 73.4 g/t Au (including 1m at 145g/t), 4m @ 38.8g/t Au and 3m @ 18.9g/t Au, over an approximate 100-metre strike hosting numerous parallel vein systems, open to the north-west and south-east.
