Perth-based lithium developer Atlantic Lithium has commenced discussions with potential offtake partners to secure the remaining funds necessary for the development of its Ewoyaa lithium project in Ghana.
The company recently entered into non-binding heads of terms with Ghana’s Minerals Income Investment Fund (MIIF), outlining a potential investment of $32.9 million in Atlantic and its Ghanaian subsidiaries to support Ewoyaa’s development.
Under the terms, MIIF will initially invest $27.9 million to acquire a 6% contributing interest in Atlantic’s Ghana portfolio, which includes the Ewoyaa project.
This funding will cover development, exploration, and study expenses. Additionally, MIIF will subscribe for over 19.24 million shares in Atlantic Lithium, amounting to $5 million and giving MIIF a 3.05% stake in the company.
This agreement grants MIIF the right to nominate board members for Atlantic’s Ghanaian subsidiaries and warrants for Atlantic Lithium shares at a 40% premium to the subscription price.
Furthermore, MIIF will have the opportunity to participate in the competitive process for the remaining offtake capacity at Ewoyaa.
This development follows Piedmont Lithium’s confirmation of its continued investment in Ewoyaa. As part of a staged agreement to earn a 50% interest in Atlantic’s Ghana portfolio, Piedmont has exercised its option to acquire an initial 22.5% interest by contributing $5 million to a regional exploration program and an additional $12 million for a prefeasibility study and definitive feasibility study.
Piedmont will now self-fund an additional $70 million to reach a total interest of 50% in the Ghana portfolio.
Piedmont’s share of production from Ewoyaa is expected to support its $809 million Tennessee lithium project in the US.
Atlantic CEO Keith Muller revealed that the company has enlisted an investment bank to oversee offtake negotiations for the remaining Ewoyaa production, aiming to secure funding for the project’s development.
Atlantic has around 86 interested parties and plans to finalize this process by the end of the year or early next year.
Muller indicated a preference for a pre-payment offtake agreement, followed by a debt facility from an offtake partner, tapping into the debt market, and raising equity as a last resort to avoid share dilution.
Atlantic aims to obtain its mining license for Ewoyaa before year-end, followed by the environmental permitting process, with plans to break ground at the lithium project by September next year.
Muller expressed confidence in the investment from MIIF, viewing it as a significant vote of confidence in the project’s development.
