Atlantic Lithium Limited has confirmed that, following the proposed merger between Piedmont Lithium Inc. and Sayona Mining, the newly formed entity, MergeCo, will assume Piedmont’s obligations under the co-funding agreement for the flagship Ewoyaa Lithium Project in Ghana.

This development represents a pivotal milestone for Atlantic Lithium as it progresses toward making Ewoyaa the first lithium mine in Ghana. Under the terms of the co-funding agreement, MergeCo will sole-fund $70 million of the development expenditure for the Ewoyaa Project.

Atlantic Lithium note that cost overruns, if any, will be equally shared between the Company and MergeCo. MergeCo will also secure the right to an offtake agreement for 50% of Ewoyaa’s spodumene concentrate production at prevailing market rates, reinforcing its strategic interest in the project.

Commenting on the development, Neil Herbert, Executive Chairman of Atlantic Lithium, expressed confidence in the partnership.

“Following our discussions with Sayona CEO and MD Lucas Dow and his team, we wholeheartedly welcome the commitment from MergeCo towards the continued funding and development of the Company’s Ewoyaa Lithium Project towards production.”
Neil Herbert, Executive Chairman of Atlantic Lithium

Atlantic Lithium highlighted the strategic importance of the merger in reducing funding risks associated with the Ewoyaa Project. MergeCo’s involvement is expected to enhance the project’s global exposure, particularly in North America and Australia, two key markets for lithium supply chains.

Herbert added, “The Proposed Merger not only emphasises the underlying belief in lithium’s role in the global energy transition but also significantly de-risks the funding of the Project, at an important juncture in its lifecycle.”

Lithium prices are projected to remain subdued in the short to medium term, which underscores the importance of Ewoyaa’s low-cost production profile. Atlantic Lithium believes this makes the project an attractive asset within MergeCo’s portfolio.

In a significant gesture of collaboration, MergeCo has invited key members of Atlantic Lithium’s staff to spend time at Sayona’s North American Lithium (NAL) project in Canada.

The NAL project is currently ramping up production to steady state, and this engagement is expected to allow Atlantic Lithium’s team to gain valuable insights into large-scale mine development, operational efficiency, and commercial lithium production.

Atlantic Lithium sees this exchange as an opportunity to leverage Sayona’s extensive expertise and apply it to the Ewoyaa Project, further ensuring its success.

Cautious Optimism

Neil Herbert, Executive Chairman of Atlantic Lithium

While the Proposed Merger holds significant promise, Atlantic Lithium cautioned that it remains subject to approval by the shareholders of Sayona and Piedmont. Consequently, no assumptions can be made about its certainty.

However, the positive discussions with Sayona CEO and MD Lucas Dow have strengthened Atlantic Lithium’s confidence in the merger’s potential benefits.

“We look forward to working closely with the MergeCo team to drive Ewoyaa forward to become Ghana’s first lithium mine,” Herbert stated.

The merger between Piedmont Lithium and Sayona Mining represents a strategic alignment of resources and expertise in the lithium industry. With the global transition to clean energy accelerating, lithium remains a critical mineral for battery technologies, particularly in electric vehicles and renewable energy storage systems.

The creation of MergeCo positions it as a major player in the lithium market, with operational footprints in North America, Australia, and now Ghana.

For Atlantic Lithium, this partnership opens doors to potential offtake agreements and enhanced market visibility, reinforcing Ewoyaa’s importance in the global supply chain.

The Ewoyaa Project, Atlantic Lithium’s flagship initiative, has garnered attention for its potential to place Ghana on the map as a lithium-producing nation. The project aligns with Ghana’s broader goals of leveraging its mineral resources to support sustainable development and contribute to the global energy transition.

While the approval process for the Proposed Merger continues, the collaborative spirit and shared vision between Atlantic Lithium and MergeCo provide a solid foundation for the project’s success.