Atlantic Lithium Limited (AIM: ALL | ASX: A11 | OTCQX: ALLIF) has agreed non-binding Heads of Terms with the Minerals Income Investment Fund of Ghana to invest a total of US$32.9M in the company and its Ghanaian subsidiaries. MIIF’s proposed investment will support the development of the company’s flagship Ewoyaa Lithium Project and the broader Cape Coast Lithium Portfolio in Ghana towards production.
Commenting, Neil Herbert, executive chairman of Atlantic Lithium, said “At this important stage in the Project’s development, as we advance towards first production, we are delighted that the Minerals Income Investment Fund of Ghana has agreed to invest US$32.9M in the Company to support of Atlantic Lithium’s flagship Ewoyaa Lithium Project and broader lithium portfolio in Ghana. We strongly welcome MIIF’s ongoing support as a key shareholder.”
MIIF is to invest US$27.9M in the company’s Ghanaian subsidiaries to acquire a 6% contributing interest in the company’s Ghana Portfolio, inclusive of the Ewoyaa Lithium Project. The contributing interest will take the form of funding of development, exploration, and studies expenditure. MIIF will therefore subscribe for 19,245,574 Atlantic Lithium shares at a price of US$0.2598 per share, for a value of US$5M, to be held in escrow, equating to 3.05% of the total issued share capital of the company.
Under the non-binding terms of the Strategic Investment, MIIF will be i) entitled to nominate one person to each of the boards of the company’s Ghanaian subsidiaries ii) invited to participate in the near-term competitive process for Ewoyaa’s available off-take and iii) granted one warrant for every two Atlantic Lithium shares subscribed for under the Subscription at a 40% premium to the Subscription price.
Atlantic Lithium has stated that MIIF’s strategic investment further aligns the company and its spodumene concentrate production ambitions at Ewoyaa and its Ghana portfolio with its Ghanaian shareholders, continuing to say that the strategic investment highlights the desirability of the Ewoyaa Lithium Project, de-risks the success of the Project and sees MIIF contribute towards the development expenditure for the Project.
The strategic investment is a major endorsement by an African sovereign wealth fund and spotlights Ghana as a highly attractive mining jurisdiction and a pioneer in the decarbonization thematic.
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