IronRidge Resources has entered a binding memorandum of understanding (MoU) with GeoDrill as part of a “drilling for equity program” of up to $4 million, or 40,000m of drilling at the exploration company’s gold and lithium portfolio throughout Africa.
GeoDrill, established in 1998, is a leading exploration drilling company with a fleet of 67 drill rigs that has operations is Ghana, Burkina Faso, Côte d’Ivoire, Mali, and Zambia.
The MoU will see IronRidge advance all projects across Ghana, Côte d’Ivoire and Chad, while maintaining cash resources, it said.
IronRidge’s Chief Executive Officer, Vincent Mascolo, said: “We are delighted to announce that the agreement with GeoDrill secures access to expert drilling capabilities, which will allow the company to effectively advance its portfolios, whilst helping preserve cash resources.
GeoDrill brings decades of operational expertise throughout West Africa and, with operational centres in both Ghana and Côte d’Ivoire, provides excellent synergies with the Ccmpany’s current jurisdictions of focus.”
Dave Harper, Chief Executive Officer of GeoDrill, said: “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 program.”
Under the terms of the binding MoU, any drilling services provided by GeoDrill will be paid by either; cash, shares, or a combination of cash and shares on a 50/50 basis at IronRidge’s election.
The agreement 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.
“The agreed payment mechanism comprises a share valuation of 90% of the 15-day volume weighted average price against the value of each monthly invoice,” IronRidge said.
Geodrill has commenced drilling works in Ghana where approximately 13,200 m of drilling has been planned at the Cape Coast lithium project over a staged reverse circulation and diamond drilling program dependent on results. It is also currently continuing field mapping and sampling programs over the Zaranou gold project, in Côte d’Ivoire, ahead of a planned air-core drill program.
In Côte d’Ivoire, IronRidge is assessing air-core results over its Bianouan and Bodite licences to determine the next steps as well as soils and trenching results over its Kineta and Marahui licences.
“At this stage the company will maintain its focus on the Côte d’Ivoire gold portfolio and the Ghana lithium portfolio,” IronRidge said.