Atlantic Lithium Launches A$9m Placing to Fund Ghana’s First Lithium Mine
Atlantic Lithium, the Africa-focused mining company, has launched a A$9 million (£4.6m) equity placing to advance its flagship Ewoyaa Lithium Project in Ghana, marking a crucial step towards delivering the country’s first lithium mine.
The ASX and AIM-listed company announced the institutional placement at A$0.23 per share, representing an 11.5% discount to its last closing price. The company has secured strong backing from its largest shareholder, Assore International Holdings, which has committed up to US$5 million to the raise.
The fundraising comes at a pivotal moment for Atlantic Lithium, following recent regulatory milestones including the granting of a Mine Operating Permit and Environmental Protection Agency approval. The proceeds will primarily fund the project’s progression towards Final Investment Decision (FID) and operational readiness.
Neil Herbert, Executive Chairman of Atlantic Lithium, said: “With significant recent progress made at Ewoyaa, this institutional equity placing will see the Company funded to advance the Project towards FID and shovel-readiness.” Herbert, along with CEO Keith Muller and Non-executive Director Edward Koranteng, have indicated their intention to invest up to A$290,000 collectively in the placing.
The Ewoyaa project, which completed its Definitive Feasibility Study in June 2023, is positioned to produce 365,000 tonnes of lithium concentrate annually over a 12-year mine life. The project’s total development cost is estimated at US$185 million, with strategic partner Piedmont Lithium committed to sole funding the initial US$70 million.
The placing will be executed in two tranches, with the first unconditional allotment expected around October 30, followed by a second tranche – including Assore’s participation – subject to shareholder approval in early December.
Canaccord Genuity is acting as Lead Manager for the placement, with Wilsons Advisory & Stockbroking as Co-Manager.
The fundraising represents a significant step in Atlantic Lithium’s journey to establish Ghana’s first lithium mine, positioning the country to participate in the global electric vehicle supply chain. The company’s progress comes amid growing demand for lithium, a crucial component in electric vehicle batteries.
Source: norvanreports.com