REG - Atlantic Lithium Ltd - 2023 Annual Financial Report

Atlantic LithiumAnnouncement

28/09/2023 07:00

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RNS Number : 9735N  Atlantic Lithium Limited  28 September 2023

28 September 2023

2023 Financial Report

Strong progress delivers exceptional Definitive Feasibility Study

and lays foundations for Ewoyaa Lithium Project mine development

The Board of Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF,
"Atlantic Lithium" or the "Company"), the African-focused lithium exploration
and development company targeting to deliver Ghana's first lithium mine, is
pleased to announce its audited results for the year ended 30 June 2023.

A full copy of the 2023 Annual Report is available through the Investor Centre
of the Company's website (https://www.atlanticlithium.com.au/
(https://www.atlanticlithium.com.au/) ). The PDF can also be viewed via the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/9735N_1-2023-9-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9735N_1-2023-9-28.pdf)

Highlights
Project Development and Exploration

-       Definitive Feasibility Study(1) for the Ewoyaa Lithium Project
("Ewoyaa" or the "Project") indicating exceptional economic outcomes and
profitability potential for a 2.7Mtpa steady state operation, producing 3.6Mt
of spodumene concentrate over a 12-year Life of Mine.

-     Significant Mineral Resource Estimate(1) ("MRE" or the "Resource")
upgrade to 35.3Mt at 1.25% Li(2)O including 28Mt in the Measured and Indicated
categories.

-      Robust Pre-Feasibility Study ("PFS") indicating the Project as an
industry-leading lithium asset.

-      Submission of Mining Lease application for the Project.

-      Completion of the Front-End Engineering Design ("FEED") for the
Ewoyaa Processing Plant.

-       Advancement of the 2023 resource and exploration drilling
programme.

 

Post-period end

-       Appointment of DRA Global Limited ("DRA") to conduct a Scoping
Study to assess the viability of an additional flotation circuit downstream to
the proposed Dense Media Separation ("DMS") processing plant.

-       Memorandum of Understanding ("MOU") signed with The University of
Mines and Technology, Tarkwa ("UMaT") to assess the viability of producing
feldspar as a by-product at Ewoyaa.

Corporate

-       Appointment of Keith Muller as Chief Executive Officer and Len
Kolff as Head of Business Development & Chief Geologist.

-       Commenced trading of the Company's shares on the ASX under the
ticker 'A11'.

-       Appointment of Keith Muller and Patrick Brindle to the Company's
Board of Directors.

-       Joined the International Lithium Association as an Associate
Member.

-      Granted eligibility for the Company's common shares listed on the
OTCQX® Best Market ("OTCQX") in the United States for electronic clearing and
settlement through the Depository Trust Company ("DTC").

-       Exploration and evaluation expenditure held on the balance sheet
for the year ended 30 June 2023 was A$18.0m (2022: A$11.1m).

-       Cash position at 30 June 2023 of A$15.3m (2022: A$23.9m).

Post-period end

-       Non-binding Heads of Terms agreed with Ghana's Mineral Income
Investment Fund ("MIIF") to invest a total of US$32.9m (A$51.4m / £26.3m) in
the Company and its Ghanaian subsidiaries to support the development of the
Ewoyaa Lithium Project.

-      Commitment from partner Piedmont Lithium to sole fund the first
US$70m, and 50% of any additional development expenditure thereafter, towards
the total US$185m development expenditure for the Project, as indicated in the
DFS(1).

-       Appointment of Aaron Maurer as Head of Operational Readiness;
launch of a mine build team in Perth and Ghana.

Commenting on the Company's latest progress, Neil Herbert, Executive Chairman
of Atlantic Lithium, said:

"I am pleased to report the Company's results for the year ended 30 June 2023.

"During the period, considerable steps have been taken to de-risk and drive
the value of the Ewoyaa Lithium Project and to ready the Company as we set our
sights on the mine build. The Company's progress through the year culminated
in the delivery of the Definitive Feasibility Study for the Project,
indicating exceptional economic outcomes.

"Over a 12-year mine life, the DFS outlines the production of 3.6Mt spodumene
concentrate, delivering free cash flow of US$2.4bn from US$6.6bn Life of Mine
revenues, a post-tax NPV(8) of US$1.5bn and an Internal Rate of Return of
105%. These outcomes further showcase the Project as an industry-leading
asset.

"The DFS incorporates the 35.3Mt at 1.25% Li(2)O Mineral Resource Estimate for
the Project, increased from 30.1Mt at 1.26% Li(2)O during the period. Our
exploration activities have proven incredibly successful to date and we are
encouraged by the early results from the 2023 drilling programme currently
underway across the Project and broader Cape Coast Lithium Portfolio. Through
the ongoing programme, we hope to increase and improve the confidence of the
current Resource in the period ahead.

"In the meantime, we are preparing the Company as it transitions away from
being a pure exploration and development company, towards soon constructing
and operating Ghana's first lithium mine. Key to this evolution has been the
appointment of experienced lithium mine operator Keith Muller as Chief
Executive Officer. Under Keith's guidance, the Company is well positioned as
we advance towards construction. To ensure a smooth and successful transition,
we continue to grow our team, both in Perth and in Ghana, to strengthen our
mine build and operating capabilities.

"The year ahead, therefore, represents a crucial period for the development of
the Project. We welcome Piedmont Lithium's ongoing support at this time, as
indicated by the commitment post-period end to sole fund the initial US$70m,
and 50% thereafter, of the total US$185m development expenditure indicated in
the DFS for the Project. Piedmont has been an excellent partner since the
initial agreement was signed in 2021 and this commitment marks a major
de-risking milestone for the Project.

"Post-period end, we were also delighted to announce the signing of Heads of
Terms with Ghana's Mineral Income Investment Fund for a total investment of
US$32.9m in the Company and its Ghanaian subsidiaries. This not only
represents a substantial endorsement of the Company's work at the Project to
date, but also more closely aligns the Government of Ghana with the ambitions
of the Company.

"Looking forward, the next major catalyst for the Company is the ministerial
award of the Mining Lease, which would be a significant landmark not only for
the Company, but also for Ghana, as the country's first lithium Mining Lease.
We hope to be granted the Mining Lease shortly, enabling us then to begin the
permitting phase.

"With a number of important developments to come, I would like to take this
opportunity to thank the entire Atlantic Lithium team for their continued hard
work and our loyal shareholders for their ongoing support.

"We look forward to updating the market on our progress in due course."

 

End note

(1) Ore Reserves, Mineral Resources and Production Targets

The information in this announcement that relates to Ore Reserves, Mineral
Resources and Production Targets complies with the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code). The information in this announcement relating to Ore
Reserves of 25.6Mt @ 1.22% Li(2)O and Production Targets is extracted from the
Ewoyaa Lithium Project Definitive Feasibility Study, announced by the Company
on 29 June 2023, and information in this announcement relating to the Mineral
Resource Estimate ("MRE") of 35.3 Mt @ 1.25% Li(2)O for Ewoyaa is extracted
from the Company's announcement dated 1 February 2023, both of which are
available at atlanticlithium.com.au (http://atlanticlithium.com.au) . The MRE
includes a total of 3.5 Mt @ 1.37% Li(2)O in the Measured category, 24.5 Mt @
1.25% Li(2)O in the Indicated category and 7.4 Mt @ 1.16% Li(2)O in the
Inferred category. The Company confirms that all material assumptions and
technical parameters underpinning the Mineral Resource Estimate and the
Definitive Feasibility Study continue to apply and have not materially
changed, and it is not aware of any new information or data that materially
affects the information included in this announcement or the announcements
dated 1 February 2023 or 29 June 2023.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

FOR ANY FURTHER INFORMATION, PLEASE CONTACT:
ATLANTIC LITHIUM LIMITED

Neil Herbert (Executive Chairman)

Amanda Harsas (Finance Director and Company Secretary)

                   www.atlanticlithium.com.au
                   IR@atlanticlithium.com.au
                   Tel: +61 2 8072 0640

 SP Angel Corporate Finance LLP      Yellow Jersey PR Limited      Canaccord Genuity Limited

 Nominated Adviser                   Charles Goodwin               Joint Company Broker

 Jeff Keating                        Bessie Elliot                 Raj Khatri / James Asensio

                                   atlantic@yellowjerseypr.com

 Charlie Bouverat
                             Harry Rees

                                   Tel: +44 (0)20 3004 9512

 Tel: +44 (0)20 3470 0470
                             Tel: +44 (0) 20 7523 4500

 

NOTES TO EDITORS:

About Atlantic Lithium

www.atlanticlithium.com.au (http://www.atlanticlithium.com.au/)

Atlantic Lithium is an AIM and ASX-listed lithium company advancing a
portfolio of lithium projects in Ghana and Côte d'Ivoire through to
production.

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant
lithium spodumene pegmatite discovery on track to become Ghana's first
lithium-producing mine. The Company signed a funding agreement with Piedmont
Lithium Inc. towards the development of the Ewoyaa Project. Atlantic Lithium
is currently advancing the Ewoyaa Project through feasibility studies and
intends to be producing spodumene concentrate via a simple gravity only
process flowsheet.

Atlantic Lithium holds 560km(2) and 774km(2) of tenure across Ghana and Côte
d'Ivoire respectively, comprising significantly under-explored, highly
prospective licences.

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