(Sharecast News) - IronRidge Resources announced on Tuesday that the conditions required for the the execution of its binding agreement with Piedmont Lithium had now been satisfied.
The AIM-traded firm said that meant Piedmont would fully fund and fast track the company's Ewoyaa lithium project in Ghana through to production, for $102m.
It said Piedmont was committing a further £0.72m, or $1m, increasing its stake to 9.91% via the placing of a further 2.88 million shares at 25p.
The board said Ghana would benefit from becoming the first lithium-producing country in West Africa.
IronRidge had also increased its net cash position to $28m for future growth initiatives, while exploration, resource drilling and studies were ongoing at the project.
"Today's completion marks a pivotal time in IronRidge's development of Ewoyaa - from initial discovery to being fully funded through to production," said chief executive officer Vincent Mascolo.
"We are delighted to be in a position to confidently advance the project, whilst working alongside Piedmont towards first lithium production in Ghana.
"This landmark investment showcases and vindicates IronRidge's successful exploration strategy, and we are excited to deliver further on the demerged gold projects in our portfolio."
At 1149 BST, shares in IronRidge Resources were up 11.65% at 23.39p.
10 Nov 2020 13:46
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