02 Jul Piedmont Lithium to invest in IronRidge Resources and its Ghana lithium portfolio
ASX-listed Piedmont Lithium has struck a deal to expand its spodumene resources by investing in a Ghana-based lithium portfolio held by Australia’s IronRidge Resources.
Under the strategic partnership, Piedmont will acquire an equity stake in AIM-listed IronRidge and make staged investments to earn a 50% interest in its lithium portfolio in Ghana, which is centred on the Ewoyaa project.
Ewoyaa has a current mineral resource of 14.5 million tonnes at 1.31% lithium oxide with further exploration upside. The project has ‘potential to be a large, low-cost spodumene concentrate producer’, according to Piedmont.
US-based Piedmont will also enter a binding supply agreement for 50% of IronRidge’s planned spodumene concentrate production.
Piedmont is expected to invest approximately US$15 million to acquire a 9.47% equity interest in IronRidge and will appoint one director to the board. In order to earn the 50% stake in Ironridge’s lithium portfolio, Piedmont must make staged investments over a three-to-four year period.
Specifically, the company must invest $17 million to fund ongoing exploration and a definitive feasibility study over the next 24 months to earn an initial 22.5% project interest, and a further $70 million in 2023-2025 to fund the construction of the Ewoyaa project for the remaining 27.5%.