Piedmont Lithium (ASX: PLL), a leading global producer of lithium resources critical to the US electric vehicle supply chain, today announced the company will increase its stake in Atlantic Lithium Limited’s (AIM: ALL | ASX: A11) Ewoyaa Lithium Project, as part of a staged investment agreement to earn a 50% equity interest in Atlantic Lithium’s Ghanaian lithium portfolio.
Under the terms of the project agreement with Atlantic Lithium, Piedmont has exercised its option to acquire a 22.5% interest in Ewoyaa, having funded the completion of the project’s definitive feasibility study (DFS). Piedmont also plans to provide a further US$70M toward Ewoyaa development capital to acquire an additional 27.5% interest in the project.
Piedmont expects to share the remaining project capital costs equally with Atlantic Lithium for a total Piedmont commitment of approximately US$128M toward the total estimated US$185M project capital costs.
Piedmont president, and CEO, Keith Phillips said the funding to support Ewoyaa furthers the company’s strategy to supply crucial lithium resources to US electric vehicle and battery manufacturers, “We are pleased to help advance the progression of Ewoyaa as a key part of Piedmont Lithium’s global portfolio and the expected feedstock for our planned lithium hydroxide conversion facility in Tennessee. Our partners at Atlantic Lithium have made tremendous progress with positive project economics recently published in a definitive feasibility study and minerals lease discussions that are progressing with Ghana’s minerals commission. We look forward to continuing our work with Atlantic Lithium to support the Project toward first production, currently targeted for 2025.”
Furthermore, the company’s additional funding remains subject to the receipt of final government and regulatory approvals for the project. Piedmont expects to be able to fund its contributions toward Project development through proceeds from the sale of lithium concentrate from its offtake agreement with North American Lithium.
The company is entitled to purchase 50% of lithium concentrate production at Ewoyaa on a market-based pricing mechanism for the life of the mine. This offtake is being planned as feedstock for the company’s proposed, 30,000 metric ton per-year lithium hydroxide conversion facility in Tennessee.
To find out more, please visit www.piedmontithium.com
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