LONDON (ShareCast) - (Sharecast News) - Africa-focussed mineral exploration company IronRidge Resources has entered into a binding memorandum of understanding with GeoDrill for a drilling-for-equity programme of up to $4m, or 40,000 metres of drilling, it announced on Thursday.
The AIM-traded firm said the drilling programme would take place across all if its gold and lithium portfolios throughout Africa.

It said the memorandum was based on a competitive quotation process, which provided for the issue of ordinary shares in IronRidge for 50% of the drilling cost, up to a value of $4m in two $2m stages.

IronRidge said it would benefit from GeoDrill's "extensive experience" operating throughout western Africa, and added that it would allow the company to maintain exploration momentum on its asset portfolio; with drilling currently underway in Ghana and drill planning underway for Côte d'Ivoire and Chad.

"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," said IronRidge chief executive officer Vincent Mascolo.

"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 company's current jurisdictions of focus."

Mascolo said GeoDrill's support "endorsed" the IronRidge exploration business model, its commodity and jurisdictional portfolios, and its team.

"We look forward to working closely with GeoDrill as we progress our portfolios."

Dave Harper, chief executive officer of GeoDrill, added that having previously worked with IronRidge on its Cape Coast Lithium project and Côte d'Ivoire Gold projects, his company understood the exploration business model, making it an "easy decision" to partner with IronRidge.

"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.

"We have a high degree of confidence in IronRidge's executive management team and board, and we look forward to working with them as we advance their exploration programmes in Africa."

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