Atlantic Lithium progressing Ewoyaa despite mining lease delays
By Josh White
Date: Friday 29 Nov 2024
(Sharecast News) - Atlantic Lithium reported significant milestones in advancing the Ewoyaa Lithium Project in Ghana in an update on Friday, despite ongoing delays in the ratification of the project's mining lease.
The AIM-traded company, which was holding its annual general meeting, said key achievements since the grant of the mining lease in October last year included securing the Environmental Protection Agency permit, mine operating permit, and land use certificate.
It also completed Feldspar and Downstream Conversion Studies, and successfully listed its shares on the Ghana Stock Exchange.
However, the final ratification of the mining lease had been delayed by political challenges ahead of Ghana's upcoming elections.
In response to the delays and weaker lithium prices, Atlantic Lithium said it had implemented significant cost reductions, including workforce cuts, to prioritise critical project activities.
The challenges had also affected funding progress, but the company remained firm in negotiating favorable terms for its offtake agreements.
Atlantic Lithium said it was still attracting demand for Ewoyaa's product, and expected to secure the necessary funding to cover its share of development costs.
Notable partnerships, including support from the Minerals Income Investment Fund (MIIF) and Assore, were said to have been pivotal.
MIIF completed a $5m subscription in January and was expected to finalise a project-level investment following permitting completion.
Assore meanwhile also led a successful AUD 10m (£5.12m) equity placement in October, enabling key project advancements.
Atlantic said it was focussed on optimising its definitive feasibility study, awarding key contracts, and preparing for a final investment decision (FID).
Despite current market pressures, the company emphasised the project's low-cost profile and strategic location, which positioned Ewoyaa competitively for rapid development once lithium prices recovered.
"We remain confident in the significant long-term demand for lithium as EV adoption continues at pace around the world and expect the current oversupply to be absorbed in the near-medium term," said chief executive officer Keith Muller.
"As we push forward towards shovel readiness, we, therefore, believe that Ewoyaa can be among the fastest out of the blocks as prices recover.
"Notwithstanding ratification of the mining lease, the year ahead presents itself as a hugely important period for the company."
Muller said key milestones included achieving final investment decision, the completion of remaining operational activities required to achieve shovel-readiness, the award of key project contracts and breaking ground itself.
At 1430 GMT, shares in Atlantic Lithium were down 2.05% at 11.96p.
Reporting by Josh White for Sharecast.com.
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