Atlantic Lithium (ALL), an Africa-focused lithium explorer, announced an initial US$5m investment by the Minerals Income Investment Fund of Ghana (MIIF) into Atlantic Lithium in line with the previously announced heads of terms to invest a total of US$32.9m.
MIIF’s investment will support the development of Atlantic’s flagship Ewoyaa lithium project and broader Cape Coast lithium portfolio in Ghana.
MIIF completed the subscription for 19,245,574 shares at a price of US$0.2598/share for the value of US$5m (A$7.60m or £3.93m). The subscription shares, to be held in escrow, equate to 3% of the total issued share capital of ALL. Under the agreed terms, MIIF is entitled to nominate one person to Atlantic’s board of directors, and will be granted 9,622,787 warrants at a price of US$0.3637.
In addition to the US$5m completed subscription, MIIF is to invest a further US$27.9m in Atlantic’s Ghanaian subsidiaries, to acquire a 6% interest in Atlantic’s Ghana portfolio. The remaining investment is expected in the coming months.
“I am delighted to welcome Ghana’s sovereign wealth fund, MIIF, onto the Atlantic Lithium register as a highly valued shareholder and partner. MIIF’s Strategic Investment recognises the considerable, long-lasting benefits that the Company, through lithium production at Ewoyaa and the broader Cape Coast Lithium Portfolio, can bring to Ghana, while also being indicative of Atlantic Lithium’s significant value upside to existing and prospective investors.” commented Neil Herbert, Executive Chairman of Atlantic Lithium.
MIIF’s Total Investment
Meanwhile, MIIF’s total investment will bolster Atlantic’s balance sheet and contribute significantly toward Ewoyaa’s US$185m estimated development expenditure as indicated by the Ewoyaa definitive feasibility study, further de-risking the project. MIIF’s decision to invest US$32.9m in Atlantic represents a major endorsement of the company’s Ghana portfolio and strategy, and speaks to Ghana’s long-term green minerals ambitions, with Atlantic being chosen as its partner of choice for lithium production.
MIIF’s remaining $27.9m investment is expected in the coming months. Together with the recently completed £4.2m placing, it funds Atlantic for its US$38m share of development costs for Ewoyaa, enabling an upgrade to the project’s Mineral Resource Estimate on track for Q3 2024. Besides MIIF, Atlantic main partner on the project is US-based Piedmont Lithium who has committed US$70m and 50% thereafter of the total US$185m capex.
Atlantic has also commenced an offtake partnering process with an investment bank due to complete in Q1 2024. As it stands, once in production Atlantic will own 40.5% of Ewoyaa, Piedmont will own an equal 40.5%, Ghana’s Mineral Income Investment Fund will own 6%, and the government of Ghana will own 13%.
Ewoyaa has strong economics as one of the lowest capex and opex hard lithium projects globally – with strong commercial metrics and profitability potential for a 2.7Mtpa operation, producing a total of 3.6Mt of spodumene concentrate (approx. 350,000tpa) over a 12-year mine life (LOM). As mentioned, an upgrade to the MRE is expected in Q3 2024. Commencement of construction is targeted for late 2024, and initial production for early 2025.
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