03 Sep Piedmont Lithium confirms 9.9% investment in Africa-focused IronRidge Resources
Piedmont Lithium has taken a 9.9% stake in AIM-listed IronRidge Resources following the satisfaction of conditions to a subscription agreement agreed to earlier this year.
The ASX-listed lithium developer struck an agreement with IronRidge in July that would see it acquire an interest in the Ewoyaa spodumene project in Ghana, along with a 50% interest in IronRidge’s Ghana-based lithium portfolio through a staged project investment.
Piedmont will subscribe for US$15 million worth of IronRidge shares and provide $17 million towards regional exploration funding and a definitive feasibility study on the project. The firm will also fund the project’s $70 million capital expenditure in return for 50% of the spodumene concentrate production over Ewoyaa’s mine life.
Production from the Ewoyaa project is expected to support Piedmont’s future lithium hydroxide production plans in North America. The offtake rights could also support a phased expansion of its flagship lithium project in North Carolina, or provide optionality for lithium hydroxide production in Quebec, in combination with offtake from Sayona Quebec and North American Lithium.
“We are pleased to have concluded this investment in IronRidge and look forward to partnering with the company to maximise the potential of the Ghana lithium portfoio,” said Piedmont president and CEO Keith Phillips.
“Our Ghanaian investments complement our existing investments in Quebec, and our wholly owned flagship Carolina Lithium Project in Gaston County, as we further execute on our strategy to become North America’s leading lithium hydroxide producer.”