PERTH (miningweekly.com) – Lithium miner Piedmont Lithium has taken a 9.9% stake in Aim-listed IronRidge Resources, following the satisfaction of conditions to a subscription agreement agreed to earlier this year.

Piedmont in July struck an agreement with IronRidge to acquire an interest in the project as well as a 50% interest in IronRidge’s Ghana-based lithium portfolio through a staged project investment.

Piedmont will subscribe for $15-million worth of IronRidge shares, as well as provide additional regional exploration funding towards a definitive feasibility study on the project to the tune of $17-million.

The lithium miner has also agreed to fund the project’s capital expenditure spend of $70-million, and signed an offtake agreement for 50% of the spodumene concentrate production over Ewoyaa’s mine life.

ASX-listed Piedmont on Tuesday said that production from the Ewoyaa project is expected to support its future lithium hydroxide production plans in North America, and that the offtake rights over the project could support a phased expansion of the Carolina lithium project, or provide optionality for lithium hydroxide production in Quebec, in combination with offtake from Sayona Quebec and North American Lithium.

“We are pleased to have concluded this investment in IronRidge and look forward to partnering with the company to maximise the potential of the Ghana lithium portfoio,” said Piedmont president and CEO Keith Phillips.

“Ewoyaa 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 Ewoyaa’s 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, as we further execute on our strategy to become North America’s leading lithium hydroxide producer.”