IronRidge Resources entered a conditional binding agreement with Piedmont Lithium, a lithium exploration and development company, to fully fund and fast track the Ewoyaa Lithium Project, part of the Company’s Ghanaian Cape Coast Lithium Portfolio (CCLP), to production.
This conditional agreement represents a unique opportunity to fast track the development of its industry-leading asset and fund its pathway to production, all whilst providing the opportunity for Ghana to become the first lithium producer in Western Africa.
Vincent Mascolo, Chief Executive Officer, IronRidge said “With Piedmont’s established relationships with US based automakers, this is an outstanding opportunity for IronRidge to fully fund its industry-leading Ewoyaa Lithium Project through to production. With the support and investment of Piedmont, along with the African mining expertise of IronRidge’s major shareholder Assore Limited, we look forward with great excitement to developing this industry leading asset”.
He said “Piedmont is developing a world-class integrated lithium business in the U.S. and will bring vast experience and expertise to the partnership as we prepare to fast-track Ewoyaa to production. This pathway to production transaction removes funding risks for IronRidge and its shareholders at a time where surety of supply to the enormous and rapidly growing North American EV and stored energy industry sectors is paramount. This funding agreement is also a testament to the strategic direction that we have taken as a Company in recognising Ewoyaa’s potential, and the dedication and focus on bringing this asset into the production and commercialisation stages.”
The Company has defined a JORC compliant mineral resource estimate at Ewoyaa of 14.5Mt at 1.31% Li2O in the inferred and indicated category, including 4.5Mt at 1.39% Li2O in the indicated category. A Scoping Study at Ewoyaa, announced in January 2021, supports a business case for 2.0 Million tonnes per annum (“Mtpa”) production operation with life of mine (LOM) revenues exceeding US$1.55 billion, with significant potential to extend LOM.
Keith Phillips, President & Chief Executive Officer, Piedmont: “Piedmont is delighted to be partnering with IronRidge to develop its outstanding Ewoyaa Lithium Project in Ghana. We consider Ewoyaa to be among one of the world’s most promising spodumene projects, leveraging existing world class infrastructure including directly adjacent HV power, a major highway within 1km of the site, and the major port of Takoradi less than 2 hours’ drive away. Few hard-rock lithium projects worldwide can boast the proximity to existing operational infrastructure, lithium grade and a simple Dense Media Separation-only process route that will require very low upfront capital expenditure. As a Company seeking to support the production of lithium and accelerate the transition to a sustainable future, we look forward to providing a pathway to production at this industry-leading project.”
Under IronRidge ownership, the Ewoyaa Lithium Project, part of the Cape Coast Lithium Portfolio, has been positioned as an industry standout project, ready for advancement through the development stages to production.