REG - Atlantic Lithium Ltd - Half-year Financial Report

Atlantic LithiumAnnouncement

15/03/2024 07:00

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RNS Number : 0186H  Atlantic Lithium Limited  15 March 2024

15 March 2024

Interim Results

Award of the historic Ewoyaa Lithium Project Mining Lease serves as key
catalyst for the advancement of the Project through the permitting phases
towards construction

 

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 unaudited Interim Results for the half-year period
ended 31 December 2023.

A full copy of the report is available through the Investor Centre of the
Company's website (https://www.atlanticlithium.com.au
(https://www.atlanticlithium.com.au) ) or can be viewed in the PDF version via
the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0186H_1-2024-3-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0186H_1-2024-3-15.pdf)

Highlights from the Reporting Period:

Project Development:

-       Mining Lease granted in respect of the Ewoyaa Lithium Project
("Ewoyaa" or the "Project"), representing a major milestone in the advancement
of the Project towards production.

-       Completion of Flotation Scoping Study, confirming the viability
of the inclusion of a flotation circuit at Ewoyaa, to run independently from
the Dense Media Separation-only ("DMS") processing plant, for the
beneficiation of naturally-occurring fines and middlings.

-       Environmental Protection Agency authorisation granted to divert
two transmission lines currently traversing planned mining areas of the
Mankessim licence, which contains the Ewoyaa Mining Lease area.

-       Bulk Customer Permit awarded to Ewoyaa for electricity
requirements, expected to deliver a 30-50% overall power cost reduction for
the Project.

 

Exploration:

-       Positive results delivered from the ongoing 2023/2024 drilling
programme:

o  Drilling outside current Mineral Resource Estimate returned multiple broad
intervals of visible spodumene and the longest continuous pegmatite interval
of 106m reported in the current drilling programme and, post-period end,
reported 83m at 1% Li(2)O from 36m and 47m at 1.05% Li(2)O from 87m within the
same area.

o  Drilling programme has been extended from the planned 18,500m to 26,500m
and, post-period end, by a further 3,000m of sterilisation drilling over the
proposed processing plant area to support construction, bringing the total
planned programme to 29,500m.

-       Maiden JORC (2012) compliant 15.7Mt at 40.2% Feldspar Mineral
Resource Estimate (MRE), including 13.7Mt (87%) in the Measured and Indicated
categories, reported for the Project, based on approximately the first five
years of the mine plan.

-       Grant of highly prospective, undrilled Bewadze and Senya Beraku
prospecting licences in the eastern portion of the Company's Cape Coast
Lithium Portfolio in Ghana.

 

Corporate:

-       Successful Equity Placing raising A$8m, enabling the completion
of the activities agreed under the grant of the Mining Lease for the Project,
key items of early works and permitting-related Project expenditure, further
extensional drilling, and for working capital purposes.

-       Appointment of several strategic hires, strengthening the
Company's leadership team ahead of mine construction.

-       Appointment of Jonathan Henry as an Independent Non-Executive
Director.

-       Rejection of two conditional and non-binding offers from the
Company's largest shareholder, Assore International Holdings Limited
("Assore"), to acquire all the shares in the Company that it does not already
own at an offer price of £0.33 per share (A$0.63).

-       Strong cash position of A$9.6 million at 31 December 2023.

-       Exploration and evaluation expenditure held on the balance sheet
for the period ended 31 December 2023 was A$19.7 million (30 June 2023: A$18.0
million) which is net of Piedmont contributions.

 

Post-period end:

-       Completion of Minerals Income Investment Fund of Ghana's
("MIIF") US$5m subscription for 19,245,574 Atlantic Lithium shares,
representing the first stage of its agreed US$32.9m total Strategic Investment
in the Company and the Project.

-       Completion of the first stage of the competitive offtake
partnering process to secure Project funding for a portion of the remaining
50% available feedstock from Ewoyaa.

-       The Company's largest shareholder, Assore, increased its stake
in the Company through the purchase of shares at a premium from Piedmont.

 

Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:

"In granting the Mining Lease in respect of the Ewoyaa Lithium Project, the
Government of Ghana has demonstrated its support for the advancement of the
Project towards production as the country's first lithium mine. This is a
historic development for both the Company and for Ghana.

"The grant of the Mining Lease enabled the commencement of the permitting
process, which is now well underway. Key milestones, therefore, lie ahead of
the Company, namely EPA approval, parliamentary ratification of the Mining
Lease and, as the final step before we can begin construction, the grant of
the mine operating permit. With overwhelmingly strong support from our local
stakeholders, the permitting phases are advancing as anticipated and we remain
on track to break ground in Q4 2024.

"We are delighted to have welcomed the Minerals Income Investment Fund of
Ghana on board as a shareholder and funding partner following the completion
of its US$5m subscription in the Company. We believe that MIIF's strong desire
to contribute towards driving the Project to production reflects Ghana's
aspirations to establish itself as a leading critical minerals jurisdiction.
We look forward to completing the second stage of MIIF's planned investment,
which will enable increased Ghanaian ownership of the Project, further
aligning the Project's continued progress with Ghana's long-term strategic and
economic objectives.

"The agreed terms of the Mining Lease highlight the Ewoyaa Lithium Project as
one of the most attractive, low-cost hard rock lithium assets globally. The
considerable interest in the Project has been evident through our ongoing
offtake partnering process. Representing a major milestone for the financing
of the Company's allocation of the development expenditure of the Project, we
look forward to completing the process in the coming months.

"With these corporate developments ongoing, our focus remains on permitting
and achieving shovel-readiness. The recent addition of 3,000m of sterilisation
drilling, which is being prioritised over resource growth drilling,
demonstrates the Company's mine build ambitions.

"Encouraging results also continue to be returned from the ongoing drilling
programme, offering strong confidence for further upgrades to the current 35Mt
Resource. Further updates on our ongoing drilling activities will be provided
as they become available. In parallel, we continue to grow our pipeline of
exploration targets with the recent grant of the Bewadze and Senya Beraku
licences, where we are securing remaining permits ahead of field work
commencing.

"2024, therefore, represents an exciting year for Atlantic Lithium. We look
forward to delivering upon the significant milestones ahead of us, with sights
set on breaking ground towards the end of the calendar year."

 

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.

 

Competent Persons

Information in this report relating to the exploration results is based on
data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc. Hons ARSM), Chief
Geologist of the Company. Mr Kolff is a Member of the Australian Institute of
Geoscientists who has in excess of 20 years' experience in mineral exploration
and is a Qualified Person under the AIM Rules. Mr Kolff consents to the
inclusion of the information in the form and context in which it appears.

 

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 its
flagship project, the Ewoyaa Lithium Project, a significant lithium spodumene
pegmatite discovery in Ghana, through to production to become the country'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
largest spodumene concentrate mines in the world.

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

Atlantic Lithium holds a portfolio of lithium projects within 509km(2) and
774km(2) of granted and under-application tenure across Ghana and Côte
d'Ivoire respectively, which, in addition to the Project, comprises
significantly under-explored, highly prospective licences.

 

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