IronRidge Resources Limited said it is dropping its interest in bauxite and iron ore to focus on lithium in Ghana and gold in the Ivory Coast and Chad.
Vincent Mascolo, chief executive, said the decision followed a hugely successful year for the business that culminated in the agreement post the year-end for Piedmont Lithium to fully fund the Ewoyaa lithium project in Ghana through to production.
"In Ghana, we reported an exceptional Scoping Study for Ewoyaa, that supports a business case for a 2.0 Million tonnes per annum production operation, with life of mine revenues exceeding US$1.55bn, said Mascolo.
This was the foundation of the Piedmont Lithium deal, he added.
In gold, the plan remains to divest the assets in the Ivory Coast and Chad into a new entity to highlight the value at the Zaranou project in particular.
“The company is now at a stage where this portfolio rationalisation will provide for better capital allocation and more focussed management time, commensurate with the more advanced status of our lithium and gold portfolio,” said Mascolo.
At 30 June 2021, IronRidge had cash of A$19.1mln having spent A$51.4mln on exploration over the year.