Aim-listed IronRidge Resources has entered into a conditional binding agreement with Nasdaq-listed Piedmont Lithium to fully fund and fast-track the Ewoyaa lithium project, in Ghana, to production.
Piedmont is a US integrated supplier of raw materials, particularly supporting the electric vehicle (EV) and industrial markets. It will subscribe for $15-million worth of IronRidge shares, as well as provide additional regional exploration funding towards a definitive feasibility study on the project, to the tune of $17-million.
Piedmont has also agreed to fund the project’s capital expenditure spend of $70-million, and signed an offtake agreement for 50% of the spodumene concentrate production over Ewoyaa’s mine life.
IronRidge stands to benefit from Piedmont’s technical, operational and corporate experience and expertise and its accelerated development timelines to production.
The IronRidge board believes this conditional agreement represents a unique opportunity to fast-track the development of its industry-leading asset and fund its pathway to production, all while providing the opportunity for Ghana to become the first lithium producer in West Africa.
Ewoyaa has a mineral resource of 14.5-million tonnes grading 1.31% lithium oxide in the inferred and indicated category, including 4.5-million tonnes grading 1.39% lithium oxide in the indicated category.
A scoping study on the project, published in January, supports a business case for a two-million-tonne-a-year operation, with life-of-mine revenues exceeding $1.55-billion and significant potential to extend the mine life.
“Piedmont is developing a world-class integrated lithium business in the US and will bring vast experience and expertise to the partnership as we prepare to fast-track Ewoyaa to production,” says IronRidge CEO Vincent Mascolo.
He adds that this pathway-to-production transaction removes funding risks for IronRidge and its shareholders at a time where surety of supply to the enormous and rapidly growing North American EV and stored energy industry sectors is paramount.
“This funding agreement is also a testament to the strategic direction that we have taken as a company in recognizing Ewoyaa’s potential, and the dedication and focus on bringing this asset into the production and commercialization stages.”
