ATLANTIC Lithium has reached a significant milestone in its quest to become a major player in the lithium market with a groundbreaking agreement. The Minerals Income Investment Fund of Ghana (MIIF) has agreed to provide a non-binding commitment of $32.9 million in funding for Atlantic Lithium, earmarked for the development of the Ewoyaa Lithium Project and the broader Cape Coast Lithium Portfolio in Ghana.
Key highlights of the Ewoyaa Project investment:
- MIIF’s investment of $27.9 million in Atlantic Lithium’s Ghanaian subsidiaries will secure a 6 percent contributing interest in the Ghana Portfolio, which includes the Ewoyaa Lithium Project. This investment will support development, exploration, and study expenses.
- MIIF will also subscribe to 19,245,574 Atlantic Lithium shares at a price of $0.2598 per share, totalling $5 million. These shares will be held in escrow, representing 3.05 percent of the company’s total issued share capital.
- Under the terms of this non-binding strategic investment, MIIF will have the right to nominate one individual to each of the boards of Atlantic Lithium’s Ghanaian subsidiaries. Furthermore, MIIF will be invited to participate in the upcoming competitive process for Ewoyaa’s off-take agreements and granted one warrant for every two subscribed Atlantic Lithium shares, at a 40 percent premium to the subscription price.
- MIIF’s Strategic Investment not only aligns Atlantic Lithium with its Ghanaian shareholders but also underscores the attractiveness of the Ewoyaa Lithium Project, reducing project risk while contributing to its development expenditure.
- This significant investment by an African sovereign wealth fund highlights Ghana’s appeal as a mining jurisdiction and showcases its commitment to the decarbonization movement.
Commenting on the development, Neil Herbert, Executive Chairman of Atlantic Lithium, said, ‘MIIF’s investment represents a huge endorsement of the company’s work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate. We consider Ewoyaa as a Ghanaian project for Ghanaians.’
Edward Nana Yaw Koranteng, CEO of MIIF, shared his perspective: ‘The acquisition of a 6 percent contributing interest in the company’s Ghanaian subsidiaries will support the funding of ongoing capital and exploration expenditure requirements across Ewoyaa and the broader Atlantic Lithium portfolio. This is just our initial investment in Atlantic Lithium and its Ghanaian subsidiaries.’
The partnership between Atlantic Lithium and MIIF marks a significant step forward in Ghana’s ambition to become a major player in the global electric vehicle supply chain. It also positions Ghana as a leading mining investment destination in Africa, signalling the start of a long-term partnership between the two entities, with a shared vision for Ghana’s growth in the critical minerals sector.