Atlantic Lithium Secures £28m Financing to Advance Ghana’s First Lithium Mine at Ewoyaa
Aim- and ASX-listed Atlantic Lithium has signed binding financing agreements with global investment firm Long State Investments, securing up to £28 million to advance its flagship Ewoyaa lithium project in Ghana.
The agreements consist of two components. The first is a share placement agreement (SPA) worth up to £8 million over the next 24 months.
Under this arrangement, Atlantic will immediately raise £2 million through the issue of 24.79 million shares. The company also has the option to conduct three further placements of £2 million each, subject to conditions including an 80-day interval between transactions.
The second component is a committed equity facility of up to £20 million, allowing Atlantic to issue shares in tranches over two years, subject to shareholder approval.
The company said this structure provides access to a significant pool of capital while retaining flexibility and minimizing shareholder dilution compared to traditional equity financing methods.
Atlantic has already secured all required regulatory approvals for Ewoyaa and is now awaiting ratification of its mining lease by Ghana’s Parliament.
This final step in the permitting process will enable the company to move forward with full project financing and development.
Ewoyaa is expected to become Ghana’s first lithium-producing mine, supplying spodumene concentrate to the global battery and electric vehicle markets.
In response to delays in the lease ratification and weaker lithium market conditions, Atlantic has implemented measures to conserve cash.
The company said it successfully reduced cash outflows from A$8.2 million in the first quarter to A$3.8 million in the fourth quarter, ensuring financial stability during the downturn.
Commenting on the agreements, Atlantic Lithium CEO Keith Muller said the funding package provides both immediate and long-term financial support at a critical stage in the company’s development.
“These agreements are timely, strengthening our financial footing while minimizing shareholder dilution,” he said.
Muller added that the flexible terms ensure Atlantic retains control over when and how to draw on the capital, significantly reducing project risks.
Atlantic’s largest shareholder, Assore International, has confirmed it will vote in favor of the agreements at an extraordinary general meeting in October, unless a superior proposal emerges.
Long State Investments Managing Director Philip Ho said the Ewoyaa project represents a strategically significant asset underpinned by strong fundamentals.
“We are very pleased to support Atlantic Lithium at such an important stage. Ewoyaa has the potential to become Ghana’s first lithium mine, and combined with an experienced management team and clear growth strategy, we see Atlantic as a highly attractive long-term investment opportunity,” he said.
Both companies stressed that the funding agreements highlight strong investor confidence in Ewoyaa and its potential to position Ghana as a new hub in the global lithium supply chain.
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