The sale is expected to allow IronRidge to focus across its core African portfolio
Australian minerals exploration company IronRidge Resources has signed an agreement to divest its non-core May Queen gold project in Australia to Australasian Gold (AGL).
Located in South East Queensland, Australia, May Queen is said to be prospective for gold.
According to the company, historic drilling completed during the 1980s at the project intersected multiple high-grade gold intervals.
The sale of the May Queen gold project is expected to allow IronRidge to maintain focus across its core African portfolio.
Under the terms of the deal, the company will receive 4.5 million AGL shares representing 34.6% of the enlarged share capital of AGL.
IronRidge to hold 5.5 million shares in AGL
Upon completion of the sale of the May Queen gold project, IronRidge is expected to hold an initial 5.5m shares in AGL.
IronRidge CEO Vincent Mascolo said: “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.
“AGL have demonstrated experience in gold exploration in addition to holding a prospective gold project in Western Australia; providing IronRidge with additional upside from their existing portfolio and the expertise they bring to the ongoing advancement of the May Queen project.”
Established in 2018, AGL holds an additional prospective gold exploration license in the Ashburton region of Western Australia.
The license is located within 30km of the Paulsens gold deposit, which is owned by Northern Star Resources.
Recently, IronRidge has commenced the third phase drilling programme within the Zaranou Gold Project area, with approximately 50,000m of drilling planned.