IronRidge Resources has entered into a conditional binding agreement with Piedmont Lithium to fully fund and fast track the Ewoyaa Lithium Project to production.
The Company has defined a JORC compliant mineral resource estimate at Ewoyaa of 14.5 Mt at 1.31% Li2O in the inferred and indicated category, including 4.5 Mt at 1.39% Li2O in the indicated category.
A Scoping Study at Ewoyaa, announced in January 2021, supports a business case for 2.0 Mtpa production operation with LOM revenues exceeding US$1.55 Billion, with significant potential to extend LOM.
Commenting, Vincent Mascolo, CEO of IronRidge, said:
“With Piedmont’s established relationships with US based automakers, this is an outstanding opportunity for IronRidge to fully fund its industry-leading Ewoyaa Lithium Project through to production.
“With the support and investment of Piedmont, along with the African mining expertise of IronRidge’s major shareholder Assore Limited, we look forward with great excitement to developing this industry leading asset.
“Piedmont is developing a world-class integrated lithium business in the U.S. and will bring vast experience and expertise to the partnership as we prepare to fast-track Ewoyaa to production.
“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 recognising Ewoyaa’s potential, and the dedication and focus on bringing this asset into the production and commercialisation stages.
“I would like to thank our team on the ground in Ghana and all of our supportive stakeholders for their efforts and ongoing support in commercialising the Project. We will continue to update the market on this exciting new phase in due course.”
Commenting, Keith Phillips, President & Chief Executive Officer of Piedmont, said:
“Piedmont is delighted to be partnering with IronRidge to develop its outstanding Ewoyaa Lithium Project in Ghana.
“We consider Ewoyaa to be among one of the world’s most promising spodumene projects, leveraging existing world class infrastructure including directly adjacent HV power, a major highway within 1 km of the site, and the major port of Takoradi less than 2 hours’ drive away.
“Few hard-rock lithium projects worldwide can boast the proximity to existing operational infrastructure, lithium grade and a simple Dense Media Separation-only process route that will require very low upfront capital expenditure.
“As a Company seeking to support the production of lithium and accelerate the transition to a sustainable future, we look forward to providing a pathway to production at this industry-leading project.”
- Conditional binding and definitive agreements entered into with Piedmont to fully fund and fast track development of the industry standout Ewoyaa Lithium Project in Ghana for US$102 million
- Piedmont is a US integrated supplier of raw materials and minerals supporting the electric vehicles and industrial markets
- Piedmont to subscribe for £10.8 million IronRidge shares at 20 pence per share
- Piedmont to fund additional regional exploration and advancing the Ewoyaa Lithium Project to DFS for US$17 million
- Piedmont to fund the Ewoyaa Lithium Project to production with full capex spend of US$70 million
- Offtake agreement for 50% of spodumene concentrate SC6% product across the LOM
- IronRidge to benefit from Piedmont’s technical, operational, and corporate experience and expertise and its accelerated development timelines to production
- Ghana to benefit from becoming the first West African lithium-producing country
- IronRidge increases net cash position to c. US$30 million for future growth initiatives
- The Board believes that this conditional agreement represents a unique opportunity to fast track the development of its industry-leading asset and fund its pathway to production, all whilst providing the opportunity for Ghana to become the first lithium producer in Western Africa.