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Ironridge Resources boosted by latest lithium acquisition

The joint venture deal with Ivory Coast group Enchi Pro (EP) covers 400 sq km

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Lithium is used increasingly in batteries, and significantly electric cars

Shares in Ironridge Resources (LON:IRR) advanced as continues to  push into lithium - as it struck a deal to buy a prospective license in Côte d'Ivoire, West Africa.

The joint venture deal with Enchi Pro (EP) covers 400 sq km where multiple untested pegmatite occurrences have been identified.

IronRidge can earn up to 100% of the project through staged earn-in arrangements and spending up to a feasibility study within four years.

It comes after earlier this month, the firm announced the acquisition of a deposit in Ghana.

Vincent Mascolo, chief executive of IronRidge, said: "We see enormous potential in supplying the growing energy industry with lithium, and securing the Côte d'Ivoire resource directly complements our recent acquisition activity in this space in Ghana.

"We believe this endorses the potential for success at the project as a first quartile cost producer, with low capital expenditure requirements and a simple mining and treatment process."

Enchi Pro will retain a net smelter royalty (NSR) of 2% capped at US$2mln with IRR having the right to acquire the royalty at any time for US$1.5mln.

The  global demand for lithium is increasing at an unprecedented rate since the emergence of consumer electronics, the electric vehicle and energy storage markets, noted IronRidge.

Shares gained 5.49% to 12p in early afternoon deals before droppig back to 11.75p before the close, a gain of 3.3%.

Quick facts: IronRidge Resources Ltd

Price: 14 GBX

AIM:IRR
Market: AIM
Market Cap: £58.11 m
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