REG - Atlantic Lithium Ltd - AGM Statement

Atlantic LithiumAnnouncement

30/11/2023 07:15

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RNS Number : 1978V  Atlantic Lithium Limited  30 November 2023

 

 30 November 2023

AGM Statement

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, announces that, at
the Company's Annual General Meeting ("AGM"), which was held at the offices of
HopgoodGanim Lawyers, Allendale Square, Level 27, 77 St Georges Terrace, Perth
WA 6000 today, Chief Executive Officer Keith Muller issued the following
statement:

"On behalf of the Board of Atlantic Lithium, I would like to welcome
shareholders to Perth for the Company's 2023 Annual General Meeting.

"Incidentally, this meeting marks almost precisely a year since I joined
Atlantic Lithium, initially as a Chief Operating Officer. Now as Chief
Executive Officer, it gives me great pleasure to today present the significant
progress that the Company has made during FY2023 and subsequently.

"Focus during the year was on de-risking and adding value to the Project,
building upon the foundations the Company has established towards our ultimate
objective of achieving production at Ewoyaa.

"In June, we reported the exceptional results of the Definitive Feasibility
Study ("DFS"), reaffirming the Project's status as an industry-leading
project. Indicating the production of 3.6Mt of spodumene concentrate over a
12-year mine life(1), delivering Life of Mine revenues of US$6.6bn when
considering a conservative long-term spodumene price of US$1,410/t, the DFS
confirms the Project's viability and places Ewoyaa as one of the top 10 hard
rock mines in the world.

"The DFS incorporates the 35Mt @ 1.25% Li(2)O Mineral Resource Estimate(1)
("MRE" or "Resource") for the Project, as announced in February 2023. Our
exploration efforts, led by Head of Business Development and Chief Geologist
Len Kolff, have been the underlying driver of the Company's success to this
point, and will remain a key component to growing value as we move forward. As
such, recognising the considerable upside still available across the Project
and broader Cape Coast Lithium Portfolio, we recently enhanced the originally
planned 18,500m drilling programme by a further 8,000m.

"The programme, which remains underway, continues to deliver impressive
results. Only earlier this week, we announced the longest pegmatite interval
intersected in the 2023 programme to date, as well as broad intervals of
visible spodumene pegmatite from multiple drillholes outside of the MRE
footprint. We look forward to reporting further progress from the current
drilling programme, intended to support the delivery of an increased Resource
thereafter.

"Key milestones have been achieved subsequent to the end of the financial
year. Most notably, we were delighted to announce that the first Mining Lease
to be issued for lithium in Ghana had been awarded to the Ewoyaa Lithium
Project. Serving as a major endorsement of the Project and representing a
momentous milestone for both Atlantic Lithium and for the country, the Mining
Lease closely aligns the Government with our objectives at Ewoyaa. We are
proud to be acting as the Government's partner of choice to develop Ewoyaa and
establish a long-term lithium supply in Ghana, which will put the country on
the map as a leading hub in Africa in the EV supply chain.

"In addition, in September 2023, we were pleased to announce the signing of
non-binding Heads of Terms with the Minerals Income Investment Fund of Ghana
("MIIF"). The investment, once completed, will see us welcome Ghana's
sovereign wealth fund on to the Atlantic Lithium register as a valued
shareholder and partner. The agreement not only represents MIIF's recognition
of the Project's potential as an attractive investment, but also as a means of
delivering generational change for Ghana. Through MIIF's investment, we also
further align our interests with those of our Ghanaian stakeholders, who we
are proud to represent.

"These major developments since last year's AGM position the Company
excellently to deliver near-term spodumene concentrate production at Ewoyaa.
Production is anticipated in H1 2025 through the modular Dense Media
Separation plant, and in H1 2026 through the main plant. Being within only two
years from first production, as a business, our focus now lies on
transitioning successfully from an explorer and developer, to one of the next
major lithium producers. In line with this transition, we continue to recruit
strategically to grow the expertise within the team, welcoming three General
Managers to the Company in recent weeks. At a vital point in the Company's
development, these appointments will, no doubt, add valuable expertise to our
leadership team.

"Since joining the Company, my focus has been on building a robust lithium
mine, capable of withstanding price pressures during potential downturns. With
prices having fallen from the highs we experienced in late 2022, it is
important to note that Ewoyaa stands out as a low-cost project versus its
peers and that the outlook for near-term spodumene projects, driven by the
underlying demand for lithium for use in EVs, remains strong. As indicated by
the DFS, and under the terms of the grant of the Mining Lease for the Project,
Ewoyaa's economic outcomes indicate impressive margins even at these prices.

"Looking ahead, we have a number of catalysts in our sights that intend to
further enhance the value of the Project and move us closer to achieving our
goal of lithium production at Ewoyaa. These include:

·    A maiden Mineral Resource Estimate for feldspar production, due this
quarter;

·    Results of the Feldspar Feasibility Study, assessing the viability of
feldspar production at Ewoyaa, due in Q1 2024;

·    Results of the Downstream Conversion Study, assessing the viability
of establishing a conversion plant in Ghana, also due in Q1 2024;

·    Further results of the drilling programme currently underway, due for
completion in Q2 2024, with an updated Mineral Resource Estimate for spodumene
production due in Q3 2024;

·    The award of procurement contracts on the Project's critical path;
and

·    Key milestones required before breaking ground, such as EPA approval,
Mining Lease ratification and the issue of the Mine Operating Permit.

"At this exciting juncture in the Company's journey, I would like to take this
opportunity to thank the Company's shareholders and partners for their valued
support, and our staff, who remain pivotal to the Company's success.

"I look forward to reporting our further progress in due course."

 

 

End Notes

(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 the
Mineral Resource Estimate ("MRE") of 35.3Mt @ 1.25% Li(2)O for Ewoyaa is
extracted from the Company's announcement dated 1 February 2023, and
information in this announcement relating to Production Targets is extracted
from the Ewoyaa Lithium Project Definitive Feasibility Study ("DFS"),
announced by the Company on 29 June 2023, both of which are available
at atlanticlithium.com.au (http://atlanticlithium.com.au) . The MRE includes
a total of 3.5Mt @ 1.37% Li(2)O in the Measured category, 24.5Mt @ 1.25%
Li(2)O in the Indicated category and 7.4Mt @ 1.16% Li(2)O in the Inferred
category. The Company confirms that all technical parameters underpinning the
MRE and the DFS continue to apply. Material assumptions for the Project have
been revised on grant of the Mining Lease for the Project, announced by the
Company on 20 October 2023. The Company 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, 29 June 2023 and 20 October 2023.

 
 
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               Financial Adviser:

 Jeff Keating                        Bessie Elliot                 Raj Khatri (UK) /

                                   atlantic@yellowjerseypr.com

 Charlie Bouverat
                             Duncan St John, Christian Calabrese (Australia)

                                   Tel: +44 (0)20 3004 9512

 Tel: +44 (0)20 3470 0470

                                                                   Corporate Broking:

                                                                   James Asensio

                                                                   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 Definitive Feasibility Study for the Project indicates the production of
3.6Mt of spodumene concentrate over a 12-year mine life, making it one of the
top 10 largest spodumene concentrate mines in the world.

The Project, which was awarded a Mining Lease in October 2023, is being
developed under a funding agreement with Piedmont Lithium Inc.

Atlantic Lithium holds 509km(2) and 774km(2) of tenure across Ghana and Côte
d'Ivoire respectively, comprising significantly under-explored, highly
prospective licences.

 

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