Atlantic Lithium Limited, an Africa-focused lithium exploration and development company, has announced an institutional placement to raise a minimum of A$9 million to support the development of its flagship Ewoyaa Lithium Project in Ghana.
This initiative, known as the Equity Placing, is a strategic move by Atlantic Lithium to secure the funds needed for advancing Ghana’s first lithium mine, with a targeted final investment decision (FID) on the horizon. Neil Herbert, Executive Chairman of Atlantic Lithium, expressed optimism over recent developments.
“With significant recent progress made at Ewoyaa, despite having been impacted by the delay in the parliamentary ratification of the Mining Lease, this institutional Equity Placing will see the Company funded to advance the Project towards FID and shovel-readiness.”
Neil Herbert, Executive Chairman of Atlantic Lithium
He underscored the criticality of the funds raised in sustaining the momentum required to develop Ewoyaa into Ghana’s first lithium mine.
With lithium demand surging globally due to electric vehicle (EV) adoption and renewable energy storage, Ewoyaa’s successful launch could position Ghana as a competitive player in the world’s lithium supply chain, especially for the EV and battery manufacturing markets.
Atlantic Lithium revealed that the Equity Placing has been structured at a fixed issue price of A$0.23 (or 11.73 pence) per new share, representing an 11.5% discount from the previous closing price on the ASX.
Atlantic Lithium aims to raise at least A$9 million through this placement, with a possibility of oversubscriptions up to A$3 million.
Strategic Investor Participation in Equity Placement
Atlantic Lithium highlighted that its largest shareholder, Assore International Holdings Limited (Assore), has also “invest up to US$5 million (A$7.5 million/£3.9 million) through the purchase of up to 32,608,695 New Shares at the Issue Price (the “Assore Participation”).”
“We warmly welcome Assore’s commitment to participate in the Equity Placing.
“As a cornerstone investor in Atlantic Lithium since its AIM listing, Assore’s participation further underscores its belief in the Company achieving its goal of delivering spodumene concentrate production at Ewoyaa.”
Neil Herbert, Executive Chairman of Atlantic Lithium
In addition to Assore’s involvement, Atlantic Lithium emphasized that its leadership has also demonstrated their commitment.
Executive Chairman Neil Herbert, CEO Keith Muller, and Non-Executive Director Edward Koranteng according to the company, have collectively pledged to invest up to A$290,000 in the Equity Placing, pending shareholder approval at the upcoming Annual General Meeting (AGM).
Their participation signifies an endorsement of the project’s prospects and a commitment to the company’s long-term goals.
Breakdown of Funding Allocation
The proceeds from this Equity Placing are expected to cover various critical areas within the Ewoyaa Project, as well as Atlantic Lithium’s broader exploration initiatives.
According the company, a significant portion of the funds will be allocated toward the technical optimization and refinement of the Ewoyaa Definitive Feasibility Study (DFS).
The company noted that the expenditure is critical as the Company advances the project through the remaining permitting steps and prepares for the operational phase.
Atlantic Lithium also disclosed that part of the funds will be directed toward, “Exploration of the highly prospective Rubino and Agboville licences in Côte d’Ivoire, as required under the terms of the licences.”
In addition to the Company’s strategic shareholders and directors, Canaccord Genuity (Australia) Limited has been appointed as the Lead Manager for the placement, while Wilsons Advisory & Stockbroking will act as Co-Manager.
This arrangement aims to maximize investor interest and secure the funding necessary for Ewoyaa’s timely development.
“We look forward to the completion of the Equity Placing, which will facilitate our next steps towards delivering Ghana’s first lithium mine.”
Neil Herbert, Executive Chairman of Atlantic Lithium
Atlantic Lithium’s Equity Placing marks a decisive step in advancing Ghana’s first lithium mine and bolstering West Africa’s presence in the global lithium industry.
The project promises to bring transformative economic benefits to Ghana, from infrastructure development to increased job opportunities and community investment.
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