JOHANNESBURG (miningweekly.com) – Assmang has entered into a share subscription agreement with iron-ore prospecting company IronRidge Resources, which will see the manganese asset developer subscribing for a 19.9% equity interest in the Australia-listed group for £11.74-million.
IronRidge was currently focused on the exploration of three early-stage iron-ore prospecting licences in Gabon, covering some 5 352 km2, the exploitation of which could potentially create world-class iron-ore mining projects.
The Tchibanga and Tchibanga North license areas were about 60 km from the coast and the port of Mayumba, while the Belinga Sud license area was within 140 km of Booue town, on the Trans–Gabon railway.
Assore and African Rainbow Minerals (ARM), each of which held a 50% stake in Assmang, said in a joint statement on Tuesday that they “believed in the long-term potential of IronRidge”.
“Ironridge offers Assmang exposure to some of West Africa’s promising iron-ore opportunities and could facilitate Assmang’s long-term access to high-grade iron-ore with competitive capital and operating costs.
“This investment forms an important component of Assore and ARM’s objectives to evaluate, secure and develop long-term, value-enhancing, strategic investments on the African continent and elsewhere,” the companies explained.
The agreement would be completed pursuant to the fulfilment of certain conditions, which included the admission of IronRidge to London’s Aim.