Atlantic Lithium given assurances on Ewoyaa after merger

ATLANTIC Lithium said on Tuesday it had received support from Sayona Lithium for its proposed $185m Ewoyaa Lithium Project in Ghana.Last week Australia’s Sayona Lithium agreed to an all-share merger with Piedmont Lithium which is a five percent shareholder in Atlantic Lithium, and has a deal in place to 180,000 tons a year of Ewoyaa’s proposed 365,000 tons a year of spodumene concentrate output.Ewoyaa will be Ghana’s first lithium mine when it comes online, around end-2026. Assore, a privately-held South African mineral investor, owns 27.6% of Atlantic Lithium.“Following our discussions with Sayona CEO and MD Lucas Dow and his team, we wholeheartedly welcome the commitment from ‘MergeCo’ towards the continued funding and development of the Company’s Ewoyaa Lithium Project towards production,” said Neil Herbert, executive chairman of Atlantic Lithium.Piedmont had, prior to its merger with Sayona, agreed to provide $70m in funding to the project, which would be honoured. Shares in Atlantic Lithium gained 6% in London where they are listed. The firm has a primary listing on the Australian Securities Exchange.In terms of Piedmont’s prior commitment, the partners in the merged company would equally share any cost overruns.“The company believes that the proposed merger will not only significantly de-risk the funding of the project towards production, but also extend the project’s exposure globally, notably in North America and Australia, including to potential offtakers,” said Atlantic.‘MergeCo’ had also invited Atlantic Lithium employees to spend time at Sayona’s North American Lithium project in Canada were production is currently being ramped up to about 190,000 tons of spodumene concentrate.The operation, which also has a concentrator, is owned by Sayona Quebec, which is a joint venture between Piedmont and majority owned by Sayona Mining.Herbert said that as lithium prices were expected to “remain subdued” over the short to medium term, Ewoyaa’s low costs make it “a highly attractive asset” – forecast at a total cost of about $675 per ton – for the merged company.“The proposed merger not only emphasises the underlying belief in lithium’s role in the global energy transition but also significantly de-risks the funding of the project, at an important juncture in its lifecycle,” said Herbert.The post Atlantic Lithium given assurances on Ewoyaa after merger appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com