Atlantic Lithium has initiated a AU$ 9 million (£4.6M) equity placement to accelerate the development of its flagship Ewoyaa Lithium Project in Ghana.
This move sets the stage for establishing Ghana’s first lithium mine, positioning Ghana as a future player in the global electric vehicle supply chain.
In a press statement, the ASX and AIM-listed Company announced an institutional placement at AU$0.23 per share, reflecting an 11.5% discount to its last closing price.
The placement has received strong support from its largest shareholder, Assore International Holdings, which has committed up to US$5 million to the raise.
The fundraising marks a crucial moment for Atlantic Lithium, following key regulatory achievements, such as the recent Mine Operating Permit and Environmental Protection Agency approval.
The funds will primarily support the project’s advancement toward 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 solely funding the initial US$70 million.
The placement will occur in two phases, with the first unconditional allotment anticipated around October 30, followed by a second phase—including Assore’s participation—pending shareholder approval in early December. Canaccord Genuity is serving as Lead Manager for the placement, alongside Wilsons Advisory & Stockbroking as Co-Manager.
The capital raise marks a pivotal milestone in Atlantic Lithium’s mission to develop Ghana’s first lithium mine, enabling the country to engage in the global electric vehicle supply chain. This advancement comes amid increasing demand for lithium, an essential material in electric vehicle batteries.
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