- Piedmont Lithium (PLL) invests 9.9 per cent in IronRidge Resources (IRR)
- PLL previously signed an earn-in agreement to buy 50 per cent of IRR’s Ghana lithium portfolio headed by the Ewoyaa Project via staged investments
- Meanwhile, an “SC6” supply deal penned by the companies in June gives Piedmont the rights to half of the spodumene concentrate produced in Ghana
- The SC6 also provides options for the expansion of staged lithium hydroxide production in North Carolina or Quebec
- Shares are down 1.88 per cent at 78.5 cents at 1:23 pm AEST
Piedmont Lithium (PLL) has invested 9.9 per cent in IronRidge Resources (IRR).
The initial investment follows the satisfaction of conditions pursuant to a subscription deal signed by both parties and announced in July.
Piedmont, a US-based lithium developer, previously entered an earn-in agreement with IronRidge to acquire up to 50 per cent of its lithium portfolio in Ghana through staged investments over three to four years.
This agreement was intended to support exploration, a definitive feasibility study and initial capital costs for IRR’s Ewoyaa Project, which has an initial mineral resource estimate of 14.5 million tonnes at 1.31 per cent lithium oxide.
Meanwhile, a “SC6” supply deal signed by the companies in June gives PLL the right to purchase half the spodumene produced from Ewoyaa at market price for life-of-mine.
Accordingly, a scoping study announced beforehand in January outlined a business case for 295,000 tonnes per year of SC6 production from Ewoyaa.
Piedmont’s president and CEO Keith D. Phillips said the company looked forward to partnering with IronRidge to maximise the potential of the Ghana lithium portfolio.
“Ewoyya is a high-quality asset with the potential for low capital operating costs and the broader portfolio offers tremendous exploration upside,” he said.
“We are currently evaluating options for production of lithium hydroxide from Ewoyaa’s SC6 supply and will provide updates as these studies progress.
“Our Ghanaian investments complement our existing investments in Quebec and our wholly owned flagship Carolina Lithium Project in Gaston County, North Carolina, as we further execute on our strategy to become North America’s leading lithium hydroxide producer.”
Specifically, PLL said offtake rights from Ewoyaa could support a phased expansion of the Carolina Lithium Project in North Carolina or provide options for production in Quebec, in combination with SC6 offtake from Sayona Quebec, a subsidiary of ASX-lister Sayona Mining (SYA), and North American Lithium.
Shares were down 1.88 per cent at 78.5 cents at 1:23 pm AEST