Atlantic Lithium Limited (ASX: A11) has provided an update on its Ewoyaa Lithium Project during its 2024 Annual General Meeting (AGM) held at the offices of HopgoodGanim Lawyers, Allendale Square, Perth, Australia.
Chief Executive Officer, Keith Muller, addressing shareholders outlined significant progress and challenges faced by the Company as it works to advance its flagship Ewoyaa Lithium Project, located in Ghana, West Africa.
“Major milestones include the grant of the Environmental Protection Agency (“EPA”) environmental permit, the Mine Operating Permit and the Land Use Certificate, and the completion of the key criteria agreed under the terms of the Mining Lease.”
Keith Muller, Chief Executive Officer
In addition, the company successfully completed and submitted two major studies: the Feldspar and Downstream Conversion Studies. These studies are pivotal for the strategic positioning of Ewoyaa as a low-cost, efficient lithium producer.
Another highlight was the listing of Atlantic Lithium’s shares on the Ghana Stock Exchange, further solidifying its presence and commitment to the Ghanaian economy.
“It is a testament to every member of our team and the Company’s partners and advisors that we have achieved these successes in such an impressive timeframe,” Muller remarked.
Despite this progress, Mr. Muller acknowledged the significant impact of delays in the ratification of the Ewoyaa Mining Lease by Ghana’s Parliament.
The ratification, which represents the final regulatory hurdle before construction can commence, has been held up due to the country’s pre-election political environment.
“With elections in Ghana fast approaching, political crosswinds have impacted the completion of parliamentary business, which has delayed our progress,” Mr. Muller explained.
This delay, coupled with subdued lithium prices, has compelled Atlantic Lithium to make difficult decisions, including reducing its workforce to allocate resources strategically. Despite these challenges, the company remains focused on advancing activities critical to the project’s success.
Funding Challenges and Strategic Partnerships
The delay in ratification has also had a ripple effect on funding activities. Atlantic Lithium has been in the final stages of its competitive offtake partnering process, but the current lithium pricing environment has complicated negotiations.
However, Mr. Muller emphasized the company’s commitment to securing funding on favorable terms that protect shareholder interests.
“We continue to receive considerable demand for product from Ewoyaa from potential offtakers.
“As such, [the company] remain confident in securing the funding that Atlantic Lithium requires to sufficiently cover its allocation of development expenditure for the Project.”
Keith Muller, Chief Executive Officer
One such partner is Ghana’s Minerals Income Investment Fund (MIIF), which made a $5 million equity investment in Atlantic Lithium in January 2024. The company expects MIIF to finalize its project-level investment once the permitting process is complete.
Another critical partner, Assore, played a lead role in raising A$10 million through an equity placement in October 2024. This funding enabled the company to continue advancing the project towards a Final Investment Decision (FID).
Mr. Muller also acknowledged Piedmont Lithium Inc., a significant project stakeholder, which is currently undergoing a proposed merger with Sayona Mining Limited.
This merger reflects broader consolidation trends in the lithium market, signaling confidence in the long-term demand for the mineral.
“We look forward to our ongoing collaboration with MIIF, Assore and Piedmont towards our shared goal of delivering commercial spodumene production at Ewoyaa.”
Keith Muller, Chief Executive Officer
A Crucial Year Ahead
Looking ahead, 2025 promises to be a transformative year for Atlantic Lithium. Key milestones include achieving FID, awarding key project contracts, and beginning construction.
Mr. Muller reiterated the company’s commitment to advancing the project responsibly and sustainably while maintaining strong relationships with host community stakeholders.
“We are grateful to our host community chiefs for their vocal support of the project,” he stated, emphasizing the importance of local engagement and collaboration.
Despite regulatory delays, Atlantic Lithium has been advancing essential work to prepare the Ewoyaa project for a shovel-ready status.
This includes refining and optimizing the project’s Definitive Feasibility Study (DFS) and progressing with the award of major contracts, such as the Engineering, Procurement, Construction, and Management (EPCM) and mining contracts.
The company is also prioritizing safety across its operations. “The well-being of our employees, contractors, and local stakeholders remains of utmost importance to us,” Mr. Muller stated, underscoring the company’s commitment to maintaining industry-leading safety practices.
While global lithium prices have softened, Mr. Muller expressed confidence in Ewoyaa’s resilience due to its low-cost production profile, proximity to infrastructure, and favorable deposit characteristics.
He noted that many higher-cost lithium projects have been delayed or suspended, which positions Ewoyaa advantageously as market conditions stabilize.
“We remain confident in the significant long-term demand for lithium as EV adoption continues at pace globally,” Mr. Muller added.
He predicted that current oversupply in the market would be absorbed in the near to medium term, paving the way for a recovery in lithium prices.
“We firmly believe in the potential that Ewoyaa presents and that we are on the right path to deliver upon this potential. I look forward to reporting on our further progress in due course.”
Keith Muller, Chief Executive Officer
Atlantic Lithium’s AGM provided shareholders with valuable insights into the progress of the Ewoyaa Lithium Project, alongside the challenges the company continues to navigate. While the delays in ratification and the lithium price environment have posed difficulties, the company’s strategic partnerships, continued progress on key permits, and commitment to advancing the project give cause for optimism.
With critical milestones on the horizon and a solid foundation built, Atlantic Lithium remains well-positioned to capitalize on the growing demand for lithium in the global electric vehicle market.
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