Business
Atlas Lithium Receives US$ 20,000,000 in Non-Dilutive Funding via a Royalty Transaction
- Largest Lithium Royalty Transaction in Brazil - - Ongoing 40,000-meter Drilling Campaign Fully Funded - Belo Horizonte, Brazil--(Newsfile Corp. - May 2,
About this update from Atlas Lithium Corporation
[{"type":"text","content":"- Largest Lithium Royalty Transaction in Brazil -\n- Ongoing 40,000-meter Drilling Campaign Fully Funded -\nBelo Horizonte, Brazil--(Newsfile Corp. - May 2, 2023) - Atlas Lithium Corporation (NASDAQ: ATLX) (\"Atlas Lithium\" or the \"Company\") is pleased to announce that the Company sold a 3.0% Gross Overriding Revenue royalty to Lithium Royalty Corp. (\"LRC\") (TSX: LIRC) in exchange for an upfront cash consideration of US$ 20,000,000 (the \"Transaction\") received today. These funds will expedite the development of Atlas Lithium's world-class hard-rock lithium project located in the Lithium Valley, state of Minas Gerais, Brazil. LRC is widely considered the premier lithium-focused royalty company and recently completed a highly successful initial public offering. This Transaction is the largest lithium royalty deal in Brazil to date and underscores the quality of Atlas Lithium's mineral assets. The details of the Transaction can be found in the Current Report on Form 8-K which was filed with the Securities and Exchange Commission today.\nMarc Fogassa, Atlas Lithium's Chairman and Chief Executive Officer commented: \"This is a landmark transaction for Atlas Lithium. Mr. Ernie Ortiz, the President and CEO of LRC, is one of the most experienced lithium investors in the world. As part of his due diligence, he met our management and operational teams, visited our Neves Project, and witnessed our drilling campaign first-hand. Mr. Ortiz has been an advocate for clean energy since 2014, and it is a privilege to have him and LRC partner with us and support our growth. Twenty million dollars is our largest raise and will solidly reinforce our continued growth. Importantly, this capital was raised in an entirely non-dilutive manner: not a single share of stock was sold.\"\nAtlas Lithium currently has 10 active drills working towards delineating the lithium resource at the Neves Project, which represents a cluster of four claims out of the Company's total of 64 mineral rights for hard-rock lithium. An initial mineral resource report for the Neves Project under the guidelines of Regulation SK 1300 (the \"Resource Report\") is expected to be released in mid-2023. The Company will continue its drilling campaign following the publication of the Resource Report and plans on releasing periodic updates to such report as further drilling data is...