Ghana Awards Historic Mining Lease for Atlantic Lithium’s Ewoyaa Lithium Project

Lithium exploration and development company Atlantic Lithium Limited has today announced that the Ministry of Lands and Natural Resources has granted a Mining Lease in respect of its flagship Ewoyaa Lithium Project in Ghana’s Central Region, paving the way for the Project to become one of the world’s top 10 largest spodumene concentrate mines.

Under the terms of the Mining Lease, agreed with the Minerals Commission in line with establishing its new Green Minerals Policy, Atlantic Lithium has been granted exclusive rights to carry out mining and commercial production activities at Ewoyaa for an initial 15-year period, renewable under Ghana’s existing legislation.

The Mining Lease represents a major endorsement for the advancement of the Ewoyaa Lithium Project by the Government of Ghana and green-lights Atlantic Lithium to undertake the next steps as it moves the Project towards commercial production.

As outlined in the Definitive Feasibility Study released for the Project in June 2023, Ewoyaa is expected to produce a total of 3.6Mt of spodumene concentrate (approximately 350,000tpa) over its expected 12-year mine life, which would position the Project as Africa’s third largest producer (based on a review of the targeted production capacity of Ewoyaa’s peers).

As the Central Region’s first major mining project, Ewoyaa is set to deliver immense benefits to the local communities in which it operates. The company, which is already one of the leading employers in the region, anticipates that the Project will create over 900 new direct jobs through the operation phase.

Furthermore, the company has committed to a community development fund, whereby 1% of its retained earnings from the Project will be invested in local initiatives and used to support local businesses.

Benefitting from Ghana’s exceptional existing infrastructure, Ewoyaa is believed to be one of the lowest capital and operating cost hard rock lithium projects globally.

North American lithium company Piedmont Lithium is expected to contribute the bulk of the required development expenditure for the Project. In return, Piedmont will receive 50% of the spodumene concentrate produced at Ewoyaa. Atlantic Lithium is currently undertaking a competitive process to secure funding for a portion of the remaining 50% available feedstock to expediate the development of the Project.

Under the terms of the Mining Lease, the Government of Ghana is granted a 13% free carried interest in the Ewoyaa Lithium Project, as well as a 10% royalty rate. The terms of the Mining Lease support the Project’s strong commercial viability and exceptional profitability potential.

In addition, Ghana’s sovereign wealth fund, the Minerals Income Investment Fund (“MIIF”) has agreed non-binding Heads of Terms with Atlantic Lithium to support the advancement of the Project, which will see MIIF invest US$32.9m in the company and its Ghanaian subsidiaries which hold its lithium projects in Ghana, inclusive of Ewoyaa. MIIF will receive a 6% interest in the Project, bringing the Government’s combined interest in the Project to 19%, with MIIF’s investment in the listed company equating to c. 3% of the Company’s shares.

Atlantic Lithium is aiming to break ground on the Project site in late 2024, with initial production to commence in 2025 from a Modular Dense Media Separation (“DMS”) Unit, and full-scale production from its main DMS plant the year after.

Under the terms of the Mining Lease, Atlantic Lithium has agreed to list on the Ghana Stock Exchange, which it intends to as soon as practicable, and, with support and incentives offered by the government, has been invited to participate in further developing the country’s lithium value chain through the evaluation of the viability of feldspar production at Ewoyaa and downstream processing in Ghana.

Hon. Samuel A. Jinapor and Hon. George Duker alongside Atlantic Lithium’s Neil Herber

Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said:

“The significance to Ghana of the award of the Mining Lease for the Ewoyaa Lithium Project should not at all be underestimated. It serves as a pivotal milestone in the nation’s economic development and as an important catalyst in Ghana’s increasing role in the global transition to clean energy.

“Ewoyaa is believed to be one of the leading hard rock spodumene assets globally. The grant of the Mining Lease, therefore, not only spotlights the country as a leading mining investment jurisdiction, but also sets Ghana on a path towards becoming one of the next major lithium producers.

“Ghana has huge ambitions to establish itself as a pioneer in Africa and as a hub in the green energy supply chain. Atlantic Lithium is proud to be chosen as Ghana’s partner of choice in these aspirations.

“We look forward to continuing our work together towards the delivery of long-term lithium production in Ghana.”