Atlantic Lithium secures mining lease for Ewoyaa project

20th Oct 2023 07:17

(Sharecast News) - Exploration and development company Atlantic Lithium has been granted a mining lease for its flagship Ewoyaa Lithium Project by Ghana's Ministry of Lands and Natural Resources.

Atlantic Lithium said on Friday that the mining lease terms maintain the project's position as "one of the lowest capital and operating cost hard rock lithium projects globally", while also indicating "strong commercial viability" and exceptional profitability potential.

The AIM-listed firm said Ewoyaa will become one of the top ten largest spodumene concentrate producers globally, with the lease also marking a "considerable de-risking milestone" in its development.

Development costs were estimated at $185.0m, to be substantially funded by Piedmont Lithium and planned investment by Ghana's sovereign wealth fund, the Minerals Income Investment Fund. The payback period for the main processing plant was estimated at 9.5 months.

Under the terms of the lease, Atlantic also agreed to be listed on the Ghana Stock Exchange, with incentives offered by the Government of Ghana as support, to participate in further value addition by undertaking studies to assess the viability of the production of feldspar at Ewoyaa and for downstream conversion in Ghana, offering the potential to significantly enhance shareholder value.

Chief executive Neil Herbert said: "As the first to be granted for lithium in the country, the award of the Mining Lease for the Ewoyaa Lithium Project is auspicious for both Ghana and Atlantic Lithium. It serves as Ghana's statement of intent to establish itself as a leading hub in Africa in the EV supply chain through the long-term production of lithium, with Atlantic Lithium as its partner of choice in this objective.

"With our sights set on first production, work is now well underway to prepare Ewoyaa for shovel readiness. Meanwhile, we continue to de-risk and enhance the value of the project through further exploration."

As of 0855 BST, Atlantic Lithium shares were up 2.27% at 27.0p.

Reporting by Iain Gilbert at Sharecast.com