- Piedmont Lithium (PLL) will fork out millions to gain a slice of one of “the world’s most promising spodumene projects”
- The company will pay £10.8 million (A$19.9 million) to acquire a 9.47 per cent stake in AIM-listed IronRidge Resources
- A further $116 million will be paid in two stages to acquire a 50 per cent stake in IronRidge’s Ghana portfolio
- Once complete, Piedmont has agreed to purchase half of all the spodumene concentrate produced by the assets
- Piedmont Lithium is down 0.48 per cent to $1.04 per share at 10:28 am AEST
Piedmont Lithium (PLL) will fork out millions to gain a slice of what CEO Keith Phillips called one of “the world’s most promising spodumene projects”.
According to this morning’s announcement, the North Carolina-based lithium developer will pay £10.8 million (A$19.9 million) to acquire a 9.47 per cent stake in AIM-listed IronRidge Resources, after which Piedmont will appoint one director to IronRidge’s board.
IronRidge holds a significant portfolio of spodumene assets in Ghana, anchored by the Ewoyaa Project, which boasts a mineral resource of 14.5 million tonnes at 1.31 per cent lithium oxide as well as promising exploration potential.
Once the equity interest has been acquired, Piedmont will pay another $22.77 million — which will be used to fund ongoing exploration work and a definitive feasibility study over the next 24 months — for a 22.5 per cent interest in IronRidge’s portfolio.
A further $93.76 million will be paid between 2023-2025 to fund the construction of the Ewoyaa Project, giving Piedmont an additional 27.5 per cent stake and a 50 per cent interest in total.
Upon completion of the earn-in milestones, the two companies will move ahead with a supply agreement, under which Piedmont will purchase half of all the spodumene concentrate produced from IronRidge’s Ghana portfolio — currently estimated to be 147,500 tonnes per year. Initial deliveries are expected to begin between July 2025 and July 2026, based current development schedules.
“The high-grade mineral resource is currently modest in scale but offers substantial exploration potential, and the project is very well-located, being only 70 miles from a major port,” Mr Phillips said.
“Ewoyaa builds on Piedmont’s strategic commitment to be a large-scale and low-cost producer of lithium hydroxide from spodumene concentrate sourced from diverse sustainable resources in favourable jurisdictions.”
Piedmont Lithium is down 0.48 per cent to $1.04 per share at 10:28 am AEST.