IronRidge Resources taking big strides with gold and lithium projects
- IronRidge reports best drill intersection to date at Ewoyaa lithium project in Ghana
- IronRidge wipes out funding risk while retaining significant interest in Ewoyaa
- IronRidge Resources has 'best in class' lithium project, says broker
- Mining Capital says IronRidge Resources' Piedmont Lithium deal is 'win win for everyone concerned'
Quick facts: IronRidge Resources Ltd
Price: 20.3 GBX
Market Cap: £116.47 m
About the company
IronRidge Resources is an African focused, diversified minerals exploration company that creates shareholder value through the discovery, development and monetisation of mineral projects through African operational, exploration and studies expertise, large-scale contiguous tenure positions and an emphasis on geological and/or jurisdictional frontier provinces.
The company has recently made significant discoveries in the lithium and gold exploration sectors.
IronRidge's corporate strategy is to create and sustain shareholder value through the discovery of world-class and globally demanded commodities.
How it is doing
The company has already defined a mineral resource estimate of 14.5mln tonnes at 1.31% lithium oxide (Li2O) in the inferred and indicated category at Ewoyaa, including 4.5mln tonnes at 1.39% Li2O in the indicated category.
The company said its final resource expansion drill programme at Ewoyaa returned the highest metal content intersection (lithium grade multiplied by meters) to date of 53 metres (m) at 1.34% Li2O from 80m in hole GRC0392.
Additional high-grade lithium pegmatite intersections were reported in reverse circulation (RC) drilling results at the Ewoyaa North and the Grasscutter targets adjacent to Ewoyaa, it said.
IronRidge Resources Ltd (AIM:IRR, FRA:BSG) has completed a transaction with Piedmont Lithium Inc (ASX:PLL, NASDAQ:PLL, XETRA:) that will allow the financing of development at the Ewoyaa lithium project in Ghana.
Piedmont will fully fund and fast track development of Ewoyaa for US$102mln, as conditions precedent to the binding agreement have now been met.
Chief executive Vincent Mascolo and chief operating officer Len Kolff have both played key roles in bringing the company to the stage where it is set to transition from explorer to producer.
Insight: IronRidge wipes out funding risk while retaining significant interest in Ewoyaa
What the brokers say
IronRidge Resources Limited has one of the most promising lithium projects in development, according to Liberum, which has kick-started coverage with a 'buy' recommendation and 32p target price.
Ewoyaa, a spodumene lithium project in Ghana, is best in class in terms of opex and capex, said the house broker.
Output from the mine would also be among the greenest available (hydropower, no chemicals, existing infrastructure, near the port).
What management says
Mining Capital's Alastair Ford gives his view on the deal struck up between IronRidge Resources Ltd's (LON:IRR) and Piedmont Lithium Inc., a Nasdaq-listed lithium exploration and development company, who will fully fund and fast track the Ewoyaa lithium project in Ghana for US$102mln.
Under the agreement, Piedmont can earn 50% of IronRidge's Cape Coast Lithium Portfolio (CCLP), which includes the Ewoyaa project, in three stages.
Ford says 'the supply and demand for Lithium is looking increasingly favourable, it's a beautiful position to be in'.
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