Atlantic Lithium’s Ewoyaa Lithium project is receiving more attention as it piques the interests of investors for a potential 100% or part purchase of its assets. Announcing this new development has sent the company’s share price to the roof, making it a ‘hotcake’ on the stock market.
Notably, the company’s stock, listed on the London Stock Exchange made additional gains, rising by around 18 per cent, as at today, March 5, 2022. This, reflects potential upside to the project in conjunction with a favorable market price for the commodity, which is likely to continue its impressive run as a result of high demand for lithium.
Recounting the receipt of unsolicited inquiries in recent months from “multiple parties interested in acquiring all or part of the company,” it said it had appointed Canaccord Genuity as its financial adviser to assess “the merit of these enquiries”.
This development aids in strengthening the idea that part or all of the business may be hived off– assuming a possible sale is locked-in at the right price, with Atlantic Lithium making some good money out of that. That said, some of this potential upside is arguably well priced-in already– shares now boast of some 70 per cent higher than they traded at in mid-March 2022.
The lithium miner said it is “also independently considering a potential secondary listing on the Australian Stock Exchange (ASX),” according to the company’s press release.
The news about the rise in the company’s share price, in about a year of assuming ownership of the Ewoyaa project has been recurrent. Last week, the company’s shares raced to an all-time high after it announced the expansion of the resource estimate of the Ewoyaa project by 42 per cent.
Piedmont’s Share price Rise
Piedmont Lithium, which owns 10 per cent shares in Atlantic Lithium also had its share price move higher upon the news about the improved resource estimate of the Ewoyaa lithium project. At the time, the company’s share price increased by 29 per cent since the start of the year. This represented a share price of more than double that of the previous year, upon the announcement of the new resource estimate on the Ewoyaa project.
Therefore, the rise in the share price of Atlantic Lithium echoes some good news. Piedmont Lithium has the right to earn-in a 50 per cent interest in Ewoyaa and all Atlantic Lithium’s Ghana projects.
Piedmont’s share price has been on the ascendancy since March 2022, when the announcement of the updated resource estimate of the Ewoyaa lithium project. Today, the company’s share price has risen by an additional $0.015, representing 1.463% to $1.040 per share.
Sitting within the company’s Cape Coast Lithium Portfolio, the Ewoyaa lithium deposit now covers a Joint Ore Reserves Committee-compliant indicated and inferred resource of 30.1 million tonnes grading at 1.26% lithium oxide.
Total Resource grade remains largely unchanged, highlighting its robust geological fundamentals, and includes a 294% increase to 20.5Mt at 1.29% Li2O in the Indicated category and 1.19% Li2O in the Inferred category. The mineralization remains open at depth and along strike with additional untested pegmatites within the immediate deposit area, providing confidence for further resource upgrades.
These positive sentiments reflect both the upside economics of Atlantic Lithium’s portfolio of assets at Ewoyaa, and the rising price of lithium on the back of increasing demand for electric vehicles.
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