Piedmont Lithium Inc (ASX:PLL, NASDAQ:PLL, XETRA:). has completed a 9.9% investment in AIM-listed IronRidge Resources Ltd (AIM:IRR, FRA:BSG) (IRR).
The investment will enable Piedmont to fully fund and fast track the development of the Ewoyaa lithium project in Ghana.
Piedmont will acquire a 50% stake in a staged earn-in of the entire IronRidge Cape Coast Lithium portfolio, including Ewoyaa, which has a mineral resource estimate of 14 million tonnes at 1.31% Li2O.
The earn-in will occur over a three to four-year period and supports exploration, a definitive feasibility study (DFS) and the initial capital costs for Ewoyaa.
Lithium supply agreement
Piedmont and IRR have also signed a SC6 (spodumene concentrate) supply agreement, whereby Piedmont has the right to purchase 50% of production from Ewoyaa at market price for the life of the mine. A Scoping Study completed in January 2021, outlined a business case for 295,000 tonnes per year of SC6 production.
Eyowaa’s proximity to ports with favourable logistics to ports in North America, make this is a highly valuable acquisition.
“We are pleased to have concluded this investment in Iron Ridge and look forward to partnering with IRR to maximise the potential of the Ghana lithium portfolio,” Piedmont CEO and President Keith Phillips said.
“Eyowaa is a high-quality asset with the potential for low capital and operating costs, and the broader portfolio offers tremendous exploration upside. We are currently evaluating options for production of lithium hydroxide from Eyowaa’s SC6 supply and will provide updates as these studies progress.”
Piedmont is aiming to become North America’s leading lithium hydroxide producer, a goal that was bolstered this week following the acquisition North American Lithium Inc (NAL), which consolidated its lithium businesses in Québec, Canada.