Aim-listed IronRidge Resources has entered into a binding memorandum of understanding (MoU) with TSX-listed GeoDrill for a drilling for equity programme of up to $4-million, or 40 000 m of drilling.
The drilling programme will take place across the company’s gold and lithium portfolios throughout Africa.
IronRidge will advance its projects in Ghana, Côte d'Ivoire and Chad, while maintaining cash resources.
The MoU is based on a competitive quotation process, which provides for the issue of ordinary shares in IronRidge for 50% of the drilling cost up to a value of $4-million in two $2-million stages.
IronRidge will benefit from GeoDrill’s extensive experience operating throughout West Africa. GeoDrill has a fleet of 67 drill rigs operating in Africa. The company has operations is Ghana, Burkina Faso, Côte d'Ivoire, Mali and Zambia.
IronRidge will maintain exploration momentum on its asset portfolio; with drilling currently under way in Ghana and drill planning under way in Côte d'Ivoire and Chad.
“Having previously worked with IronRidge on their Cape Coast lithium project and Côte d'Ivoire gold projects, we understand their exploration business model and it was an easy decision for us to partner with IronRidge in this drilling for equity programme,” GeoDrill CEO Dave Harper commented in a statement issued on Thursday.
“We see significant upside in IronRidge's asset portfolio, we understand Ghana and Côte d'Ivoire well, and we believe that IronRidge has the right commodity and jurisdiction diversification, with gold and lithium being well positioned at this time,” he added.