The group is issuing some 67.85mln new shares priced at 7p each. The funding comprises two tranches, due to the company’s existing allowances, with just over 50mln new shares issued in the first tranche and a further 17.8mln to be issued conditionally with the passing of resolutions at a general meeting in June.
The funds raised in the placing will pay for a phased drill programme, A 9,000 metre programme is already underway and it will be followed by a more aggressive campaign of 30,000 metres. Drilling will pave the way for a maiden mineral resource estimate for the project.
It will also fund ongoing development across the group’s portfolio including gold assets in Côte d'Ivoire and Chad, along with the Cape Coast Lithium assets in Ghana.
"The fundraise will enable the company to accelerate momentum during 2020 at our flagship Zaranou Gold Project through an aggressive drilling programme targeting a maiden mineral resource estimate, further develop the highly prospective suite of gold assets in Côte d'Ivoire and Chad, and advancing our lithium discovery in Ghana,” Vincent Mascolo, Ironridge's chief executive said in a statement.
"We have resumed drilling at our Zaranou Gold Project through a phased drilling campaign designed to assess mineralisation continuity and targeting a maiden mineral resource estimate. We continue to advance our remaining suite of gold assets in Côte d'Ivoire and Chad, along with low-cost value adding initiatives across our Cape Coast Lithium Portfolio in Ghana.”
He added: “We have made considerable progress over the course of 2019 and into 2020. Despite the global pandemic backdrop, we are focused on accelerating drilling at the Zaranou Gold Project and we remain on track to deliver on multiple milestones."