Business
Canaccord to Fully Underwrite Gold Demerger A$7.2m
Canaccord to Fully Underwrite Gold Demerger A$7.2m.
About this update from Atlantic Lithium Limited.
[{"type":"text","content":"\n \n \n \n RNS Number : 0405R\n IronRidge Resources Limited\n 02 November 2021\n \n \n \n \n 2 November 2021\n \n \n \n \n \n Gold Demerger \n \n \n Ricca Resources - Proposed Pro Rata Rights Issue \n \n \n Canaccord Genuity (Australia) Limited to Fully Underwrite A$7.2m\n \n \n \n \n \n IronRidge Resources Limited (AIM: IRR, \"IronRidge\" or the \"Company\") is pleased to announce that Canaccord Genuity (Australia) Limited (\"Canaccord\"), the Lead Manager of the proposed rights issue to be undertaken by Ricca Resources Limited (\"Ricca\") the entity into which the Company's gold assets will be transferred and subsequently demerged (subject to satisfaction of the demerger conditions), has been secured as underwriter of the\n \n proposed rights issue (the \"Ricca Rights Issue\")\n . \n \n \n \n \n \n The full details of the demerger and resolution to be put to the Company's shareholders are set out in the Notice of Meeting \n and Explanatory Memorandum,\n dated and announced on 26 October 2021. As set out in the Notice of Meeting, \n subject to satisfaction of the demerger conditions:\n \n \n \n \n \n ·\n Ricca will receive an initial start-up capital injection of A$7m as part of the agreement for the transfer of the gold assets from the Company to Ricca; \n \n \n \n \n \n ·\n Eligible IronRidge shareholders will receive an in-specie distribution of 1 Ricca Share for every 8 IronRidge Shares held at the \n In-specie Distribution Record Date (which is currently scheduled to be 23\n November 2021); \n \n \n \n \n \n · \n Eligible IronRidge shareholders will also receive a priority offer to participate in the Ricca Rights Issue to raise a further A$7.2m at A$0.10 cents per Ricca share, with entitlements being determined on the Rights Issue Record Date (currently scheduled to be 23 November 2021); and\n \n \n \n \n \n ·\n Lead Manager and Underwriter, Canaccord, will fully underwrite the A$7.2m Ricca Rights Issue enabling the Company to fast-track the demerger by almost one (1) month. (See revised demerger timetable below).\n \n \n \n \n \n Following the implementation of the proposed demerger, and assuming full subscription under the proposed Ricca Rights Issue, Ricca will have a closing cash balance of A$14.2m before costs with an issued capital of 143,436...