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.
Piedmont has committed a further £720,000 and has increased its stake in IronRidge to 9.91% via the placing of a further 2.88mln shares at 25p.
As a result of the transaction, Ghana is likely to become the first West African lithium-producing country.
"Today's completion marks a pivotal time in IronRidge's development of Ewoyaa,” said Vincent Mascolo, chief executive of IronRidge.
"We are delighted to be in a position to confidently advance the project, whilst working alongside Piedmont towards first lithium production in Ghana. This landmark investment showcases and vindicates IronRidge's successful exploration strategy, and we are excited to deliver further on the demerged gold projects in our portfolio."
Under the terms of the overall deal, Piedmont will earn-in to up to 50% of IronRidge's Cape Coast Lithium Portfolio in Ghana, including Ewoyaa, in various stages.