LONDON, UK: Atlantic Lithium Limited, the African-focused lithium exploration and development company, announced today that its partner Piedmont Lithium has agreed to support the development of its flagship Ewoyaa Lithium Project in Ghana towards production.
Piedmont, a US-based lithium company, has exercised its option to acquire an initial 22.5% interest in Atlantic Lithium’s spodumene projects in Ghana, as part of a staged investment agreement to earn a 50% interest by sole funding the first US$70 million, and 50% of any additional development expenditure, towards the total US$185 million development cost for the project.
The Ewoyaa Lithium Project is expected to produce 3.6 million tonnes of spodumene concentrate over a 12-year mine life, with an estimated post-tax net present value of US$1.5 billion and an internal rate of return of 105%. The project has a mineral resource estimate of 35.3 million tonnes at 1.25% lithium oxide and an ore reserve of 25.6 million tonnes at 1.22% lithium oxide.
Neil Herbert, Executive Chairman of Atlantic Lithium, said: “We are delighted to have Piedmont as our partner to fast-track the development of Ewoyaa, which is set to become Ghana’s first lithium mine. This partnership will enable us to leverage Piedmont’s expertise and experience in the lithium sector, as well as their strong relationships with key customers and stakeholders in the US market.”
He added: “Ewoyaa is a world-class asset with exceptional profitability potential and low environmental impact. We look forward to working with Piedmont to deliver this project and create value for our shareholders and the people of Ghana.”
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