Atlantic Lithium Poised to Become Ghana's First Lithium Producer

Atlantic Lithium Limited, an Africa-focused lithium exploration and development company, has received approval to list its ordinary shares on the main market of the Ghana Stock Exchange (GSE). The listing, expected to take place at a yet-to-be-announced date, will make Atlantic Lithium the first near-term lithium producer with an in-country asset to list on the GSE. The company is currently listed on the AIM and ASX stock exchanges.

Atlantic Lithium's flagship project is the Ewoyaa lithium project, a globally significant hard rock spodumene deposit located in Ghana's Central Region. According to the June 2023 definitive feasibility study, the project is expected to produce a steady state of 365,000 tonnes of spodumene concentrate per annum, positioning it as one of the largest spodumene mines in the world. The company is advancing the project towards production, with construction expected to commence in the latter half of 2024.

Why this matters: The development of Ghana's lithium sector has significant implications for the global transition to electric vehicles and renewable energy, as lithium is a critical component in battery production. The development of Ghana's lithium sector has significant implications for the global transition to electric vehicles and renewable energy, since lithium is a critical component in battery production. This shift towards cleaner energy sources means Ghana's emergence as a major lithium producer could havefar-reaching consequences for the environment and the global economy.

The Ghanaian government has demonstrated significant support for the advancement of the Ewoyaa project. On October 20, 2023, Ghana's Minister of Lands and Natural Resources granted a mining lease in respect of the project, enabling its progression towards commercial production. In addition, Ghana's mineral sovereign wealth fund, MIIF, has invested US$5 million in Atlantic Lithium, becoming a new major strategic shareholder. MIIF has also agreed to invest an additional US$27.9 million in Atlantic Lithium's Ghanaian subsidiaries, which hold the company's lithium interests in Ghana, to acquire a 6% contributing interest in the Ghana portfolio, inclusive of theEwoyaa project.

Neil Herbert, Executive Chairman of Atlantic Lithium, emphasized the significance of the GSE listing, stating,"By offering Atlantic Lithium shares on the GSE, we aim to maximise local participation in the project and more closely align our Ghanaian partners with the long-term success of the company. In addition, we believe we provide the opportunity for Ghanaian investors to contribute towards and share ownership in the advancement of Ghana's first lithium mine and the emergence of its promising green minerals industry. "Atlantic Lithiumis currently awaiting parliamentary ratification of the mining lease and is advancing the necessary permitting steps, with the intention of breaking ground at Ewoyaa in the second half of 2024.

The project is set to achieve nameplate capacity in 2026, against a backdrop of increasing global electric vehicle demand. Upcoming milestones for the Ewoyaa project include the conclusion of the competitive offtake partnering process, the ratification of the mining lease by Parliament, and the grant of final permits required to start construction.

Atlantic Lithium has been operating in Ghana since 2016 and has established itself as a leading employer and taxpayer in the Central Region. The company's in-country team is entirely Ghanaian, including many from the communities that surround the project. Black Star Brokerage Limited is acting as Transaction Advisor, Sponsoring Broker, and Arranger to the company's listing on the GSE.

With the Ewoyaa project's potential to contribute to the global lithium supply chain and support the electrification transition, Ghana is set to play a key role in the green minerals industry. The successful development of the Ewoyaa project promises economic benefits for Ghana and offers an opportunity for local communities to participate in the long-term success of the company and the country's emerging lithium sector.

Key Takeaways

• Atlantic Lithium to list on Ghana Stock Exchange (GSE), first near-term lithium producer to do so.
• Ewoyaa project expected to produce 365,000 tonnes of spodumene concentrate per annum.
• Ghana's lithium sector development crucial for global electric vehicle and renewable energy transition.
• Ghanaian government supports Ewoyaa project with mining lease and investment in Atlantic Lithium.
• Project construction to commence in 2024, with nameplate capacity expected in 2026.