IronRidge Resources has entered into a binding conditional agreement with Piedmont Lithium, a Nasdaq-listed lithium exploration and development company, to fully finance and accelerate production of the Ewoyaa Lithium project in its Ghanaian Cape Coast Lithium portfolio, he announced Thursday .
The AIM-listed company described Piedmont as an integrated supplier of raw materials and minerals based in the United States, supporting electric vehicles and industrial markets.
He said Piedmont would subscribe to £ 10.8million ($ 15million) of IronRidge shares at 20p each and fund additional regional exploration, pushing the Ewoyaa Lithium project forward to a definitive feasibility study for 17million. of dollars.
Piedmont would fund the Ewoyaa Lithium project through production, with total capital expenditures of $ 70 million.
IronRidge said the deal included an offtake agreement for 50% of the 6% spodumene concentrate over the life of the mine, adding that it would benefit from technical, operational and technical experience and expertise. of Piedmont, as well as its accelerated development times to production.
He added that Ghana would benefit from becoming the leading lithium producer in West Africa.
The company also increased its net cash position to $ 30 million for future growth initiatives as a result of the deal.
“With Piedmont’s established relationships with US-based automakers, this is an exceptional opportunity for IronRidge to fully fund its state-of-the-art Ewoyaa Lithium project through production,” said General Manager Vincent Mascolo.
“With the support and investment from Piedmont, as well as the African mining expertise of IronRidge’s largest shareholder, Assore, we look forward to developing this leading asset in the industry.
“Piedmont is developing a world-class integrated lithium business in the United States and will bring extensive experience and expertise to the partnership as we prepare to ramp up Ewoyaa production. “
Mascolo said the transaction leading to production removed funding risks for IronRidge and its shareholders, at a time when the security of supply to North America’s “huge and rapidly growing” electric vehicle and fuel sectors. he stored energy was essential.
“This financing agreement is also a testament to the strategic direction we have taken as a company in recognizing the potential of Ewoyaa, as well as the dedication and focus on bringing this asset into the production stages and marketing.
“We will continue to inform the market of this exciting new phase in due course. “
At 1,024 BST, shares of IronRidge Resources rose 12.46% to 21.62%.