Atlantic Lithium to get further Ewoyaa funding from Piedmont Lithium

(Alliance News) - Atlantic Lithium Ltd on Thursday said its partner Piedmont Lithium Ltd has ...

Alliance News 17 August, 2023 | 8:59AM
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(Alliance News) - Atlantic Lithium Ltd on Thursday said its partner Piedmont Lithium Ltd has committed to further support the development of Atlantic Lithium's flagship Ewoyaa lithium project in Ghana towards production.

Sydney-based, Africa-focused lithium exploration and development firm Atlantic Lithium, with assets in Ghana and Ivory Coast, said Piedmont Lithium has exercised its option to acquire an initial 22.5% interest in Atlantic Lithium's spodumene projects in Ghana.

This follows Piedmont's sole funding of USD5 million toward Atlantic Lithium's regional exploration programme and USD12 million towards the delivery of the pre-feasibility study.

To earn the full 50% interest as part of a previously agreed staged investment deal in July 2021, Piedmont Lithium will solely fund the first USD70 million, and 50% of any additional development, expenditure towards the total USD195 million development expenditure for the Ewoyaa project, as indicated in its definitive feasibility study announced at the end of June.

All additional development expenditure thereafter will be split equally between Atlantic Lithium and Piedmont Lithium, the former said.

Atlantic Lithium noted how the DFS "confirms the project's economic viability and exceptional profitability potential for a 2.7 [million tonnes per annum] steady state operation", alongside producing 3.6 million tonnes of spodumene concentrate over a 12-year life of mine.

"Since our initial agreement in July 2021, Piedmont Lithium remained a highly supportive and collaborative partner, working alongside the company to achieve our shared goal of delivering a successful spodumene concentrate mine at Ewoyaa. We are, therefore, delighted that Piedmont has elected to proceed with the next phase of Ewoyaa's development," said Atlantic Lithium Executive Chair Neil Herbert.

"We believe that this commitment to the next stage of development reflects Piedmont's strong belief in Ewoyaa, further de-risking the project and moving us ever closer to first spodumene concentrate production in Ghana. We look forward to providing further updates in due course."

Piedmont Lithium Chief Executive Officer Keith Phillips added: "The Ewoyaa project is a key part of Piedmont's global portfolio, and we are confident with the progress that our partners have made, both with the robust definitive feasibility study and in discussions with Ghana's Minerals Commission about Ewoyaa's minerals lease."

Shares in Atlantic Lithium were up 3.9% to 21.59 pence each in London on Thursday morning.

On Monday last week, Atlantic Lithium said it had remained of receiving a mining licence for the Ewoyaa project, despite recent reports of a new green minerals policy in Ghana.

Atlantic Lithium initially submitted a mining licence application to the Minerals Commission of Ghana for the extraction of minerals from Ewoyaa last October.

It firm acknowledged comments made by Ghana's Minister for Lands and Natural Resources Samuel Jinapor, which related to potential implications for mining companies from the introduction of the new policy, including changes to the mining royalty rate and the state's carried interest in minerals projects.

By Greg Rosenvinge, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Atlantic Lithium Ltd 21.80 GBX 0.93 -

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