Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF) has released its audited financial results for the year ending June 30, 2024, highlighting key milestones in its efforts to develop Ghana’s first lithium mine.
The African-focused lithium exploration and development company is on track to establish a major lithium mining operation in Ghana, with significant advancements reported on its flagship Ewoyaa Lithium Project.
As the global demand for lithium intensifies, Atlantic Lithium has successfully navigated regulatory hurdles and secured strategic partnerships to expedite project development.
Commenting on the company’s achievements, Neil Herbert, Executive Chairman of Atlantic Lithium, expressed optimism for the future.
“I am pleased to report Atlantic Lithium’s results for the year ended 30 June 2024, during which significant progress has been made towards the Company’s ongoing transition from explorer to mine developer and operator.”
Neil Herbert, Executive Chairman of Atlantic Lithium
A key achievement for Atlantic Lithium during this period was the grant of the Mining Lease for the Ewoyaa Lithium Project, Ghana’s first lithium mining project. The Mining Lease, granted post-period end, is currently under parliamentary review for ratification.
“The grant of the Mining Lease serves as an important de-risking milestone for the advancement of the Project and represents a major landmark, both for the Company and for Ghana, in the pursuit of achieving spodumene concentrate production at Ewoyaa.”
Neil Herbert, Executive Chairman of Atlantic Lithium
The Ewoyaa Project has made strides towards securing all necessary permits, ensuring smooth transition from exploration to production.
During the financial year, Atlantic Lithium revealed it completed two public hearings led by Ghana’s Environmental Protection Agency (EPA), gaining environmental approval post-period for its mining and processing plans.
Further, Atlantic Lithium completed and submitted critical studies to Ghana’s Minerals Commission, including the Downstream Conversion Study and Feldspar Study.
These studies according to the company assessed the feasibility of using Ewoyaa’s resources for downstream lithium production and the extraction of feldspar, a byproduct that could add further value to the project.
The completion of a Flotation Study also confirmed the viability of including a downstream flotation circuit at the project, offering additional opportunities for value addition at Ewoyaa.
Strategic Partnerships and Financial Backing
Atlantic Lithium has garnered strong financial and strategic backing to support its project development.
“In line with its earn-in agreement with the Company, Piedmont exercised its option to acquire an initial 22.5% interest in the Company’s ownership of its lithium projects in Ghana.”
Neil Herbert, Executive Chairman of Atlantic Lithium
Piedmont’s financial support will be instrumental in driving the Ewoyaa Project towards production.
Additionally, the company announced it secured a US$32.9 million strategic investment from Ghana’s sovereign wealth fund, the Minerals Income Investment Fund (MIIF). This agreement marks MIIF’s commitment to expedite the development of Ewoyaa, with an initial US$5 million investment completed during the financial year.
Furthermore, MIIF Chief Executive Officer Edward Nana Yaw Koranteng joined Atlantic Lithium’s board as a Non-Executive Director, alongside the appointment of Jonathan Henry as an Independent Non-Executive Director.
The company also completed an AU$8 million equity placement with existing and new institutional investors, further solidifying its financial position.
Atlantic Lithium revealed that it rejected two conditional offers from its largest shareholder, Assore International Holdings Limited, for a full takeover, maintaining its independence while progressing towards production.
Advancements in Exploration and Resource Expansion
Exploration efforts across Atlantic Lithium’s portfolio were fruitful during the reporting period. The company announced a maiden JORC-compliant Feldspar Mineral Resource Estimate (MRE) of 15.7 million tonnes at 40.2% feldspar at Ewoyaa.
The feldspar deposit is expected to cover the first five years of production at the project, further enhancing its economic prospects.
Moreover, Atlantic Lithium reported positive drilling results from a total of 27,791 meters completed at Ewoyaa, including at the Dog-Leg target, which contributed an additional 890,892 tonnes to the project’s overall resource.
Post-period, the company announced a significant increase in the Ewoyaa Mineral Resource Estimate, now standing at 36.8 million tonnes at 1.24% Li2O, underscoring the project’s potential as a globally significant lithium source.
In addition to its developments in Ghana, the company expanded its exploration activities into Côte d’Ivoire, with exploration permits granted for the Rubino and Agboville licences. Post-period, the company commenced preliminary mapping and soil sampling in these areas, marking its first steps into lithium exploration beyond Ghana.
The company also announced the commencement of an offtake partnering process for up to 500,000 tonnes of spodumene concentrate, expected to be produced at Ewoyaa. This process will attract potential partners eager to secure lithium supply, further enhancing the project’s commercial viability.
Herbert emphasized that the Ewoyaa Project’s favorable geology and low operating costs make it a strong contender in the global lithium market, even in a lower pricing environment.
Herbert also expressed gratitude towards project partners and shareholders for their continued support and reaffirmed the company’s commitment to reaching production.
“We look forward to a hugely exciting year ahead, marked by milestones that will see us move closer to delivering Ewoyaa as a globally significant spodumene mine,” he emphasized.
As Atlantic Lithium transitions from exploration to production, it remains well-positioned to become a key player in the burgeoning lithium industry, with the Ewoyaa Project set to play a pivotal role in meeting global demand for lithium, a critical component in electric vehicle batteries and renewable energy storage.
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