HopgoodGanim advises on IronRidge AIM listing and GBP 9.7m capital raising

12 February 2015

HopgoodGanim has advised Australian-based IronRidge Resources Limited on its GBP 9.7 million* capital raising and AIM listing. IronRidge securities began trading on AIM at 8 am today (London time) with the ticker IRR. This is the first iron ore listing on AIM in more than a year, and given the recent slide in iron ore prices, it is likely to be the only or one of the few iron ore listings on any exchange anywhere for some time to come. UK firm Locke Lord advised the company on the UK-law and AIM specific aspects of the listing.  HopgoodGanim enjoys a close working relationship with Lock Lorde. 

The transaction will support IronRidge’s continued efforts to develop projects in West Africa. The company’s activities include drilling and exploration programs in the Tchibanga Prospect and Tchibanga North Prospect, two adjacent permitted areas located in the Tchibanga region in the south-west of Gabon, and the Belinga Sud Prospect, located in the north-east of Gabon. 

HopgoodGanim partner Brian Moller was pleased to again be able to work with the management team behind IronRidge and long-standing client, IronRidge Executive Chairman, Nick Mather. Brian commented, “In an otherwise challenging minerals market, especially in the case of iron ore, we again enjoyed working on a groundbreaking project with Nick and the DGR team. The success of the listing is a credit to their quality reputation as a junior explorer.” 

IronRidge’s Executive Chairman Nick Mather said:

 "IronRidge secured two cornerstone investors in Sumitomo and Assore as part of the process of bringing Ironridge to the AIM market - this deal sets IronRidge apart from other junior iron explorers in Africa.   Sumitomo and Assore will provide IronRidge with the necessary support to execute the company’s objectives, through the evolution of IronRidge from explorer to developer which is where we want to go." 

In addition to partner Brian Moller, the HopgoodGanim team included Peter Burge (Special Counsel), Luke Dawson (solicitor), Shilpa Dougall (solicitor) and Nastassia Tognini (solicitor). The Locke Lord team included partner James Channo, Sharon O’Donnell (associate), and Philippa Townley (trainee solicitor).

In addition to the difficulties arising from the softening global iron ore prices, the transaction raised a number of unique and challenging legal issues by virtue of the fact that the company is subject to both the Australian Corporations Act 2001 (Cth) and the AIM [Listing] Rules for Companies, the latter being designed largely with UK companies law and practice in mind. HopgoodGanim sought and obtained ASIC relief under section 609 of the Corporations Act which relief had not previously been granted by ASIC. This relief significantly reduced the complexity around those aspects of the transaction requiring shareholder approval.

SP Angel acted as nomad and broker to the company, and was advised by UK law firm Memery Crystal.

Further details of the transaction can be found on IronRidge’s website