Atlantic Lithium raises A$10 million to advance flagship Ewoyaa Lithium Project towards FID

Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the Africa-focused lithium exploration and development company targeting the delivery of Ghana’s first lithium mine, is pleased to announce the successful completion of its institutional placement (“Equity Placing”), as announced on 24 October 2024 on AIM and 25 October 2024 on the ASX (“Launch Announcement”), raising a total of A$10 million (£5.1 million/US$6.7 million) at a price of A$0.23 (equivalent to 11.73 pence) per New Share (“Issue Price”). A total of 43,478,261 new fully paid ordinary shares of no-par value each in the Company will be issued (“New Shares”).

As part of the Equity Placing, Assore International Holdings Limited (“Assore”), the Company’s largest shareholder, has conditionally subscribed for US$5.0 million (A$7.5 million/£3.9 million) (the “Assore Participation”) through the allotment of 32,775,013 New Shares at the Issue Price. Atlantic Lithium Executive Chairman Neil Herbert, Chief Executive Officer Keith Muller and Non-executive Director Edward Koranteng (the “Participating Directors”) have also conditionally subscribed for 1,260,870 New Shares at the Issue Price, equating to an aggregate of A$290,000 (the “Director Participation”).

The Assore Participation and Director Participation are conditional on shareholder approval at the Company’s upcoming Annual General Meeting (“AGM”). On the basis that Assore’s participation is approved at the upcoming AGM, Assore will hold 30.56% of the Company’s issued share capital.

Proceeds of the Equity Placing will be used to contribute to the funding of the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana towards the Project Final Investment Decision (“Project FID”), including undertaking an optimisation and technical refinement of the Ewoyaa Definitive Feasibility Study and the completion of activities related to permitting and operating requirements prior to breaking ground at the Project, and for working capital purposes.

Canaccord Genuity (Australia) Limited (“Canaccord”) acted as Lead Manager (“Lead Manager”) to the Equity Placement. Wilsons Advisory & Stockbroking acted as Co-Manager (“Co-Manager”).

Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:

“We are pleased to have raised A$10 million in an Equity Placing led by the Company’s largest shareholder, Assore, and supported by existing, new institutional shareholders and Participating Directors.

“The successful Placing, undertaken in a challenging market environment for lithium companies, demonstrates strong support for the Project from existing and prospective shareholders. Assore has proven to be a hugely supportive shareholder and partner since the Company’s admission to AIM and, through its participation in the Equity Placing, has demonstrated its ongoing belief in the success of the Project.

“With the proceeds allocated to completing key activities to advance Ewoyaa towards Project FID, the Placing puts the Company on firm footing to achieve its ambitions of delivering commercial production of spodumene in Ghana.

“We look forward to providing further updates on our progress in due course.”

We caught up with Chairman Neil Herbert. He provided an update on Atlantic’s operations, outlining the key recent milestones reached and what we should look out for in the next twelve months