Business
Partner Commits to Ewoyaa Development Funding
Partner Commits to Ewoyaa Development Funding.
About this update from Atlantic Lithium Limited.
[{"type":"text","content":"\n\n\n17 August 2023\nPartner Commits to Ewoyaa Development Funding\nPiedmont Lithium exercises option to acquire initial 22.5% interest in Atlantic Lithium's Ghana Portfolio\nand commits to sole fund the first US$70 million of Ewoyaa's total development expenditure and 50% of any additional development expenditure required to build Ghana's first lithium mine\n\nAtlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, \"Atlantic Lithium\" or the \"Company\"), the African-focused lithium exploration and development company targeting to deliver Ghana's first lithium mine, is pleased to announce that its partner Piedmont Lithium (Nasdaq: PLL; ASX: PLL, \"Piedmont\") has notified the Company of its intent to support the development of Atlantic Lithium's flagship Ewoyaa Lithium Project (\"Ewoyaa\" or the \"Project\") in Ghana towards production.\nAs part of the staged investment agreement (the \"Agreement\") to earn a 50% interest in Atlantic Lithium's spodumene projects in Ghana (\"Ghana Portfolio\"; refer announcement of 1 July 2021), Piedmont has exercised its option to acquire an initial 22.5% interest to fast-track the development of the Project. To earn the full 50% interest in the Company's share of the Ghana Portfolio, Piedmont will sole fund the first US$70 million, and 50% of any additional development expenditure, towards the total US$185 million development expenditure for the Project indicated in the Definitive Feasibility Study1 (\"DFS\"), which confirms the Project's economic viability and exceptional profitability potential for a 2.7Mtpa steady state operation, producing 3.6Mt of spodumene concentrate over a 12-year Life of Mine (refer announcement of 29 June 2023).\nCompletion of Stage 2\nAtlantic Lithium confirms that Piedmont has earned a 22.5% interest in the Company's Ghana Portfolio through the satisfaction of the terms set out in Stage 2 of the Agreement, comprising Piedmont's sole funding of:\n· US$5 million towards the Company's 2022 regional exploration programme; and\n· US$12 million towards the delivery of the Pre-Feasibility Study (\"PFS\") (refer announcement of 22 September 2022) and the DFS1 for the Project.\nCommencement of Stage 3\nUnder the terms set out in Stage 3 of the Agreement, Piedmont will sole fund an initial US$70 million towards the total US$185 milli...