The company, in a statement, noted that the existing company constitution requires it to offer new securities first to existing shareholders.
IronRidge is now seeking, under resolution 7 of the EGM, to get authorisation to issue shares without this pre-emption.
“It is the company’s view that it can raise capital in a cost-efficient and timely manner by carrying out a private placement instead of an offer of equity securities to all existing shareholders where the costs of compliance with relevant securities laws would be much greater,” the company said in a statement.
Other resolutions put forward for the EGM relate to share warrants and director share options.
On May 11, Ironridge announced it had raised £4.75mln through a conditional share placing, with the funds earmarked for an accelerated drill programme at the Zaranou gold project in Côte d’Ivoire.
At that time it said that some 67.85mln new shares would be issued with a price of 7p each.
The funding comprises two tranches, due to the company’s existing allowances, with just over 50mln new shares issued in the first tranche and a further 17.8mln to be issued conditionally with the passing of resolutions at a general meeting.
Published at Tue, 02 Jun 2020 09:38:00 +0000-IronRidge Resources calls EGM to rubberstamp equity funding