Business
Atlas Lithium Fully Funded to First Production in 2024
HIGHLIGHTS Direct investment at a premium into Atlas Lithium and offtake agreements for Phase 1 of Atlas Lithium's battery grade spodumene concentrate
About this update from Atlas Lithium Corporation
[{"type":"text","content":"HIGHLIGHTS\n\n\nDirect investment at a premium into Atlas Lithium and offtake agreements for Phase 1 of Atlas Lithium's battery grade spodumene concentrate production have been executed with two top lithium chemical companies, Chengxin Lithium Group and Yahua Industrial Group, suppliers of lithium hydroxide to Tesla, BYD, and LG, among others. Goldman Sachs served as financial advisor to Atlas Lithium in these transactions.\n\n\nChengxin and Yahua have committed an aggregate of US$50 million to Atlas Lithium with US$10 million as equity at $29.77 per share (a 10% premium to recent VWAP) and US$40 million as non-dilutive prepayment in exchange for 80% of Atlas Lithium's Phase 1 lithium concentrate production.\n\n\nWith these transactions, Atlas Lithium is fully funded for its estimated total CAPEX to first production of US$49.5 million.\n\n\nThe accelerated production timeline will be achieved by deploying modular DMS technology and contracting the initial crushing and mining operations with local third parties. The DMS plant for Phase 1 has already been designed and purchased; it is being constructed at an expert facility and will be air freighted into Brazil in 2024.\n\n\nPhase 1 annualized production targets up to 150,000 tonnes per annum (\"tpa\") of battery grade spodumene concentrate by Q4 2024, with the offtake agreements announced today comprising 120,000 tpa in total and with each party receiving 60,000 tpa. Atlas Lithium's planned Phase 2 aims to increase capacity to 300,000 tpa by mid-2025. Phase 2 capacity remains uncommitted.\n\n\nAtlas Lithium is well positioned to become one of the highest-quality, lowest-cost lithium producers in the world. DMS is an environmentally sustainable technology, and the Company's project has strong support from the community where it operates.\n\n\nBoca Raton, Florida--(Newsfile Corp. - December 4, 2023) - Atlas Lithium Corporation (NASDAQ: ATLX) (\"Atlas Lithium\" or \"Company\"), a leading lithium exploration and development company, is pleased to announce full funding for its early revenue strategy designed to allow the Company to be in production in Q4 2024. Atlas Lithium has estimated the total Phase 1 capital expenditures (\"CAPEX\") to be US$ 49.5 million for the implementation of mining and production of spodumene concentrate at its lithium project in Brazil's Lithium Valley. Th...