REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
28/04/2023 07:15
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RNS Number : 7912X Atlantic Lithium Limited 28 April 2023
28 April 2023
Corporate Update
Quarterly Activities and Cash Flow Report
for the quarter ended 31 March 2023
Highlights
The Board of Atlantic Lithium Limited ("Atlantic Lithium" or the "Company"),
the funded African-focussed lithium exploration and development company
targeting to deliver Ghana's first lithium mine, is pleased to present its
Quarterly Activities Report for the period ended 31 March 2023.
During the quarter, the Company reported a significant Mineral Resource
Estimate(1) ("MRE" or the "Resource") upgrade to 35.3Mt at 1.25% Li(2)O for
the Ewoyaa Lithium Project ("Ewoyaa " or the "Project") in Ghana, announced
the commencement of the 2023 exploration and resource drilling programmes and
provided an update on the Definitive Feasibility Study ("DFS") underway at the
Project and targeted for release in Q2 2023.
Figures, Tables and Appendixes referred to in this release can be viewed in
the PDF version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/7912X_1-2023-4-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7912X_1-2023-4-27.pdf)
Highlights from the reporting period include:
Exploration
· 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
o 79% of the overall MRE(1) now in higher confidence Measured and Indicated
categories, with 3.5Mt at 1.37% Li(2)O in the Measured category and 24.5Mt at
1.25% Li(2)O in the Indicated category
o MRE(1) incorporates all assay results and high-grade pegmatites reported
during the period for the total 47,000m drilling programme completed in 2022
· Commencement of the 2023 exploration and resource programmes at the
Project, comprising:
o Approximately 20,000m of auger drilling to test multiple targets
identified within the Project area and broader Cape Coast Lithium Portfolio
("Portfolio")
o 100m x 100m grid soil geochemistry survey over the Cape Coast licence
ahead of target definition
o Passive seismic geophysics survey to test for potential concealed
pegmatite targets within the immediate Ewoyaa MRE(1), commenced post-period
end
o Approximately 10,000m of infill drilling, commenced post-period end
o Approximately 2,000m of diamond core ("DD") drilling for Project studies
including water monitoring, metallurgy and resource twinning of Reverse
Circulation ("RC") holes
o Analysis of pegmatite drill intersections from stored pulps and retention
samples for multi-element geochemistry to help define a feldspar Mineral
Resource Estimate in support of future mine studies
Project Development
· Staged project development plan underway, as part of the Definitive
Feasibility Study ("DFS") for the Project, focussing on improved plant
efficiency and increased metal recovery to optimise the Project's economics:
o Stage 1 - DFS Project Development, comprising:
§ Crushing and screening to three size fractions (from 1-10mm) in order to
improve cyclone performance
§ Retain sales of natural occurring fines as a direct shipping ore ("DSO")
by-product
§ Model various mine throughput scenarios to optimise Project outcomes
o Stage 2 - Scoping Studies, comprising of three separate value-adding
streams:
§ Evaluation of early lithium spodumene concentrate ("SC6") production
opportunities through the rapid deployment of Modular Dense Media Separation
("DMS") units to capitalise on the current SC6 price environment
§ Later-stage beneficiation of natural occurring fines to SC6
§ Production of feldspar by-product to reduce waste and to supply Ghana's
growing ceramics industry
o Study to consider various mine throughput scenarios for the Project
· Front-End Engineering Design ("FEED") and DFS progressed well during
the period
Corporate
· Atlantic Lithium listed in the 2023 OTCQX® Best 50, an annual
ranking of top performing companies traded on the OTCQX Best Market in 2022
· Post-period end, joined the International Lithium Association as an
Associate Member
· Cash on hand at end of quarter was A$16.0 million
Sustainability
· Project site visit for key in-country stakeholders
· Attendance at Women in Mining breakfast hosted by the Australian High
Commission to Ghana, Accra
· Donations made to support a PV lighting programme in the region and
to support the celebration of the 66(th) Independence Day
Commenting on the Company's latest progress, Neil Herbert, Executive Chairman
of Atlantic Lithium, said:
"The first quarter of 2023 has seen the Company build upon the impressive
progress made in 2022, putting Atlantic Lithium on track to meet its targets
through the rest of 2023.
"From its discovery, Atlantic Lithium has made great strides in de-risking and
proving Ewoyaa to be a globally significant lithium asset. Following the
success of the Project's 47,000m drilling programme completed in 2022, which
returned the highest intersects reported to date, we are delighted that the
Mineral Resource Estimate has increased to 35.3Mt at 1.25% Li(2)O, including
28Mt in the Measured and Indicated categories. The improved MRE will be
incorporated in the Definitive Feasibility Study, due in Q2 2023. Meanwhile,
resource and exploration drilling is ongoing to improve the confidence of
current resources and extend the Resource footprint.
"Exploration, which has always been an area of expertise for Atlantic Lithium,
will remain a key component to unlocking further value at Ewoyaa as the
Company advances the Project through studies and permitting. With much of the
Company's tenure in Ghana yet to be drilled, we are confident that Ewoyaa and
the wider Cape Coast Lithium Portfolio offer significant value upside through
further exploration. While drilling continues, our sights are now set on
production at Ewoyaa and taking the necessary steps to achieve this goal.
"During the period, the Company provided an update on the Definitive
Feasibility Study, which is progressing well and remains on track for Q2. The
planned staged developments aim to increase metal recovery and improve plant
efficiency, which is expected to significantly enhance the Project's
economics. These planned developments include evaluating the potential for
early-stage lithium spodumene concentrate production and establishing a route
to market for the feldspar by-product. We believe that Ewoyaa will become a
significant supply of feldspar, enabling the enhancement of the domestic
ceramic industry, capable of delivering benefits to local communities, Ghana
and the region more broadly, long after the life of the mine.
"Looking ahead, we expect to achieve key value milestones in the coming
period, including the release of the DFS and completion of the FEED. We are
also in regular contact with the Minerals Commission and the Ghanaian
government and hope to shortly receive the grant of the Mining Lease,
following the submission of our application after the Pre-Feasibility Study
was announced in September 2022.
"2023 is set to be a major year for Atlantic Lithium and the development of
the Ewoyaa Lithium Project. We are pushing ahead on all fronts to achieve our
goals, with the aim of maximising value at Ewoyaa for the Company and its
shareholders. We look forward to providing further updates on our progress in
due course."
Ewoyaa Lithium Project, Ghana, West Africa
Ewoyaa is the Company's flagship project and is targeted to be Ghana's first
lithium-producing mine, having secured project development funding via a
partnership agreement with Piedmont Lithium Inc. (NASDAQ: PLL; ASX: PLL, refer
announcement of 31 August 2021).
The Project includes the Ewoyaa, Anokyi, Okwesikrom, Grasscutter, Abonko and
Kaampakrom deposits and is located in Ghana, West Africa, approximately 100km
southwest of the capital of Accra. The Project is well located being adjacent
to operational infrastructure including 1km from the Takoradi - Accra N1
highway, 110km from the Takoradi deep-sea port and adjacent to hydroelectric
sourced grid power, within the pro-mining jurisdiction of Ghana.
The Project is proven to produce a premium spodumene concentrate ("SC6")
product suitable for conversion to battery-grade lithium carbonate and
hydroxide. The site is easily accessed from Accra via the bitumen Accra-Cape
Coast-Takoradi highway being 100km from the Capital city Accra (refer Figure
1).
Figure 1: Location of the Ewoyaa Lithium Project
March Quarter Activities
Exploration
Mineral Resource Estimate upgrade to 35.3Mt at 1.25% Li(2)O
An upgraded MRE(1) of 35.3Mt at 1.25% Li(2)O was completed for the Ewoyaa
deposit and surrounding pegmatites; collectively termed the "Ewoyaa Project".
The Mineral Resource is reported in accordance with the JORC Code (2012). The
MRE includes a total of 3.5Mt at 1.37% Li(2)O in the Measured category, 24.5Mt
at 1.25% Li(2)O in the Indicated category and 7.4Mt at 1.16% Li(2)O in the
Inferred category (refer Table 1).
The independent MRE(1) for Ewoyaa was completed by Ashmore Advisory Pty Ltd
("Ashmore") of Perth, Western Australia, with results tabulated in the
Statement of Mineral Resources in Table 1. The Statement of Mineral Resources
is reported in line with requirements of the JORC Code (2012) and is therefore
suitable for public reporting.
High-level Whittle optimisation was completed by Mining Focus Consultants Pty
Ltd of Perth, Western Australia and demonstrates reasonable prospects for
eventual economic extraction.
Table 1: Ewoyaa Mineral Resource Estimate(1) (0.5% Li(2)O Cut-off)
Measured Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Primary 3.5 1.37 48
Total 3.5 1.37 48
Indicated Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 0.5 1.09 5
Primary 24.1 1.26 302
Total 24.5 1.25 307
Inferred Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 1.8 1.13 20
Primary 5.6 1.17 66
Total 7.4 1.16 86
Total Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 2.2 1.12 25
Primary 33.1 1.25 415
Total 35.3 1.25 440
Competent Persons Note:
The Mineral Resource has been compiled under the supervision of Mr. Shaun
Searle who is a director of Ashmore Advisory Pty Ltd and a Registered Member
of the Australian Institute of Geoscientists. Mr. Searle has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity that he has undertaken to qualify as a
Competent Person as defined in the JORC Code.
All Mineral Resources figures reported in the table above represent estimates
at January 2023. Mineral Resource estimates are not precise calculations,
being dependent on the interpretation of limited information on the location,
shape and continuity of the occurrence and on the available sampling results.
The totals contained in the above table have been rounded to reflect the
relative uncertainty of the estimate. Rounding may cause some computational
discrepancies.
Mineral Resources are reported in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
Joint Ore Reserves Committee Code - JORC 2012 Edition).
There are four main geometallurgical domains at Ewoyaa; coarse-grained type P1
and finer-grained type P2 pegmatites and their weathered equivalents. Their
estimated relative abundances, metallurgical recoveries and concentrate grades
are shown in Table 2.
To show the tonnage and grade distribution throughout the entire deposit, a
bench breakdown has been prepared using a 10m bench height which is shown in
Figure 2 and grade-tonnage curve for the classified resource in Figure 3.
Table 2: Material types, recoveries and concentrate grades (recoveries based
on laboratory results)
Weathered
Geomet Type Tonnage Li(2)O Cont. Lithium Oxide Recovery Conc. Grade
Mt % kt % Li(2)O (%)
P1 2.0 1.13 23 68 6.0
P2 0.2 1.00 2 50 6.0
Total 2.2 1.12 25
Primary
Geomet Type Tonnage Li(2)O Cont. Lithium Oxide Recovery Conc. Grade
Mt % kt % Li(2)O (%)
P1 29.3 1.28 375 70 6.0
P2 3.8 1.06 40 50 5.5
Total 33.1 1.25 415
Competent Persons Note: as per Table 1 above and metallurgical sign off in
Competent Persons section at end of document.
Figure 2: Ewoyaa Tonnage and Grade - 10m Bench Elevation
Figure 3: Ewoyaa Lithium Project Grade - Tonnage curve for classified
pegmatite resource
Final assay results and high-grade pegmatites for the total 47,000m drilling
programme completed in 2022
During the period, the Company received final assay results for 10,052m of
exploration and infill diamond core ("DD") drilling and reverse circulation
("RC") drilling completed as part of the 47,000m resource evaluation and
exploration RC and DD programme completed at the Project in 2022.
High-grade drill intersections were reported on 12 January 2023 at the
Kaampakrom North, Grasscutter North, Anokyi and Grasscutter West targets, as
well as new mineralised pegmatites confirmed at the Assan targets. Highlight
drill intersections included:
· GRC0825: 36m at 1.23% Li(2)O from 42m
· GDD0102A: 22.2m at 1.62% Li(2)O from 73.3m
· GRC0837: 20m at 1.6% Li(2)O from 44m
· GDD0103: 15.1m at 1.24% Li(2)O from 55.4m
· GRC0842: 12m at 1.55% Li(2)O from 93m
· GRC0839: 13m at 1.35% Li(2)O from 99m
· GRC0850: 12m at 1.24% Li(2)O from 96m
· GRC0341: 12m at 1.03% Li(2)O from 134m
· GRC0844: 7m at 1.69% Li(2)O from 162m
· GRC0872: 8m at 1.48% Li(2)O from 34m
These results were incorporated into the MRE(1) update to 35.3Mt at 1.25%
Li(2)O announced during the reporting period.
The 35.3Mt at 1.25% Li(2)O MRE(1) will be incorporated into the Definitive
Feasibility Study ("DFS"), due to be released in Q2 2023.
2023 exploration and resource programmes
On 20 March 2023, the Company announced planned exploration and resource
drilling programmes for the 2023 season with three key objectives; improve
Resource confidence and add potential tonnes to the current MRE(1), test for
concealed pegmatites within the immediate Resource footprint using passive
seismic geophysics and expand the regional exploration pipeline of targets
(refer Figure 4).
The following resource drilling and exploration programmes are planned for
2023.
Resource Programme:
Approximately 10,000m of resource infill and extensional RC and DD drilling is
planned at the Project (refer Figure 4), consisting of:
· 3,000m of infill drilling to convert Inferred resources to the higher
confidence Indicated category at the Ewoyaa South 2 deposit for future mine
sequencing optionality;
· 7,000m of step out extensional drilling along strike and at depth
below the Ewoyaa Main, Ewoyaa North-East and Kaampakrom corridor deposits
aiming to grow the current MRE(1).
Infill drilling commenced at the Ewoyaa South 2 deposit post-period end. The
programme is designed to convert the current Inferred category resources to
the Indicated category, in support of future mine scheduling options
(refer Figure 4).
Once the 3,000m infill drilling programme is completed at Ewoyaa South 2, the
rig will move to the Ewoyaa Main deposit to commence step out drilling to
potentially add tonnes to the
MRE(1).
Approximately 7,000m of resource extension drilling is planned at the Ewoyaa
Main and Ewoyaa North-East deposits where mineralisation remains open at
depth, and at the Kaampakrom target where mineralisation remains open along
strike and depth (refer Figure 4).
A further 2,000m of DD drilling is planned for Project studies including water
monitoring, metallurgy and resource twinning of RC holes.
Exploration Programme:
Approximately 20,000m of auger drilling is planned over a five-month period to
test multiple coincident geochemical and geophysical targets within the
Project corridor and broader Portfolio (refer Figure 4). The auger drilling
is designed to test for pegmatites below vegetation and soil cover in the
absence of outcrop and, if intersected, step out drilling over a grid pattern
will follow to define the sub-surface pegmatite footprint ahead of RC drill
testing at depth for grade potential.
Auger drilling commenced during the period and is ongoing with approximately
7,900m drilled to date including new targets north and west of the current
MRE(1) footprint.
The Company has engaged Fleet Space Technologies to conduct a passive seismic
geophysical survey within the immediate Ewoyaa MRE(1) footprint to test the
potential for concealed pegmatite targets (refer Figure 4).
The Company has planned a potential five arrays over a one-month period
covering a 1.7 km(2) evaluation area, comprising a single broad spaced geode
(230m) grid testing to a planned depth of +/- 300m, and four closely spaced
geode grids (100m) over the four quadrants of the same 1.7 km(2) area to test
for pegmatites <20m thick down to +/- 100m depth.
Subsequent to the reporting period, the first grid array over a 1,300m x
1,300m area was installed and the survey, utilising Fleet Space Technologies'
ExoSphere real-time ambient noise tomography ("ANT") geodes, is now underway.
Dependent on the results of the regional auger drilling and passive seismic
survey, the Company has allowed for 6,500m of exploration RC drilling to test
the targets defined later in the year.
During the period, the Company commenced a 100m x 100m grid soil geochemistry
survey over the Cape Coast licence ahead of target definition. The soil survey
is ongoing.
On completion of 100m x 100m grid soil sampling, all samples will be analysed
in-house for multi-element geochemistry using portable X-Ray fluorescence
('pXRF') and lithium using portable laser-induced breakdown spectroscopy
('LIBS') analysers. Anomalous Li-Rb-Sn targets with coincident geophysical
anomalies will be prioritised for field mapping and pending results, auger
drilling. Targets for mapping and auger follow-up will be defined from the
results of the geochemical analysis.
During the period, the Company commenced sampling of stored resource drilling
pulps and retention samples for multi-element geochemistry in support of
defining a feldspar Mineral Resource Estimate in support of future mine
studies. Work to define a feldspar Mineral Resource Estimate will be
undertaken as part of the development of the Project and is expected to
enhance the Project's economics. The Company believes the Project can
significantly boost Ghana's ceramics industry through the establishment of a
domestic, sustainable supply source.
The planned resource drilling programmes and the analysis of pegmatite drill
intersections for multi-element geochemistry will not impact the targeted
delivery date of the DFS, due in Q2 2023, which will be based on the current
35.3Mt @ 1.25% Li(2)O MRE(1).
Figure 4: Overview of planned 2023 exploration and resource programmes'
targets currently defined over geology interpretation with transparent Li LIBS
soils overlay heatmap.
Project Development
On 22 March 2022, the Company announced an update on the Definitive
Feasibility Study for the Project.
The planned developments to the Project result from the Company's increased
MRE(1) to 35.3 Mt @ 1.25% Li(2)O (refer announcement of 1 February 2023) and
ongoing work to optimise the Project's processes. The planned developments are
intended to increase metal recovery and improve plant efficiency.
The Company outlines the following steps in the planned development of the
Project towards production.
Planned Stage 1 - DFS and Project Development
Results from the heavy liquid separation ("HLS") testwork series (refer
announcement of 22 September 2022) confirmed that crushing to an all-in
top-size of 6.3 mm would produce superior results and that a simple
gravity-only DMS would be suitable for the plant.
Following further testwork, the Company plans to crush and screen to three
size fractions (from 1-10mm) in order to improve cyclone performance and
maximise metal recovery and grade in the processing plant at the Project.
Figure 5: Ewoyaa flowsheet
The Ewoyaa flowsheet (refer Figure 5) provides for the extraction of natural
occurring fines, which still hold a relatively high head grade and metal
credits. The natural occurring fines hold approximately 5% of the metal units
reporting to the plant. The secondary cyclone 'rejects' or 'floats' produced
through DMS at the Project have a relatively high grade, accounting for
approximately 7% of the metal reporting to the plant. When combined with the
natural occurring fines, this material is ideal for sale as a low-grade
product, with a lithium content in the range of 1-1.2%.
As part of the Stage 2 Scoping Studies, the Company intends to investigate the
potential to beneficiate this material through a middlings beneficiation
process, which could further improve value.
During the period, the Company commenced the study of various mine throughput
scenarios for the DFS in line with the increased MRE(1) of 35.3 Mt @ 1.25%
Li(2)O. An optimal throughput scenario will be incorporated in the DFS, due in
Q2 2023.
Stage 2 - Scoping Studies
Separate to the delivery of the DFS, the Company commenced the investigation
of three study streams intended to add significant value to the Project.
The Company intends to conduct a study to evaluate the potential for early SC6
production through the deployment of Modular DMS units. The Company believes
that the Modular DMS units can be easily installed, enabling earlier
production in the current high lithium price environment.
The Company also plans to conduct a study to undergo beneficiation of
middlings, which is a combination of naturally occurring fines produced and
secondary floats from the cyclone process, which have consistently delivered
lithium grades similar to the MRE(1). By optimising the processing of
middlings, the Company aims to enhance SC6 production.
As detailed in the PFS (refer announcement of 22 September 2022), the Company
believes that commercial quantities of feldspar may be produced from the plant
- feldspar being defined as aluminosilicates containing a combined alkali
content (Na(2)O + K(2)O) of greater than 10%. Ghana currently imports feldspar
to supply its ceramics industry. The Company outlined its intention to
evaluate the route to market of the feldspar produced as a by-product at
Ewoyaa which could significantly enhance Ghana's ceramics industry. There is
interest in Ghana to set up processing of the feldspar and this option is also
being considered by the Company.
Work remains ongoing to further optimise the Project's processes and
economics.
During the period, the Front-End Engineering Design ("FEED") and DFS
progressed well. In March, the Company conducted a 75% FEED completion meeting
with its FEED partner, the Primero Group.
The DFS remains on track for delivery in Q2 2023.
Interest in Tenements
At the end of the quarter ending 31 March 2023, the Group had an interest in
the following tenements:
1. The Australian tenures will be relinquished in the financial year ended
30 June 2023 and was written down to zero value at 30 June 2022.
* Renewal applications have been submitted to the various mining departments
of the relevant Governments and the Group has no reason to believe the
renewals will not be granted.
Corporate
Atlantic Lithium in the 2023 OTCQX Best 50
Atlantic Lithium was listed in the 2023 OTCQX® Best 50, a ranking of top
performing companies traded on the OTCQX Best Market last year (refer
announcement of 20 January 2023).
The OTCQX Best 50 is an annual ranking of the top 50 US and international
companies traded on the OTCQX market. The ranking is calculated based on an
equal weighting of one-year total return and average daily dollar volume
growth in the previous calendar year.
The complete 2023 OTCQX Best 50 ranking can be found at the following link:
https://www.otcmarkets.com/files/2023_OTCQX_Best_50.pdf
(https://www.otcmarkets.com/files/2023_OTCQX_Best_50.pdf)
Atlantic Lithium joins the International Lithium Association
Post-period end, the Company announced that it had become an Associate Member
of the International Lithium Association (ILiA), the global trade association
for the lithium industry. Representing the entire lithium value chain, the
association aims to be a voice and global authority for the industry and
support the sector's efforts to supply high-quality lithium sustainably and
responsibly.
Committed to acting as a modern, transparent and responsible mining company,
Atlantic Lithium's membership of ILiA represents the Company's ambition to
bringing the Ewoyaa Lithium Project in Ghana to production to play an
important role in accelerating the electric vehicle revolution through the
creation of a sustainable supply of lithium.
Conferences attended
The Company attended the following conferences during the period:
· Headline sponsor for the West African Institute of Mining, Metallurgy
and Petroleum (WAIMM) Annual Industry Conference, Accra (17-18 January 2023)
· Mining Indaba 2023, Cape Town (6-9 February 2023)
· Red Cloud's Pre-PDAC Mining Showcase, Toronto (2-3 March 2023)
· Loop Capital Markets 2023 Investor Conference (13 March 2023)
· Paydirt's Battery Minerals Conference, Perth (21-22 March 2023)
· TB Amati Strategic Metals 2 Year Anniversary Seminar, London (23
March 2023)
The Company also hosted a webinar on the Investor Meet Company platform
outlining the latest and planned developments at Ewoyaa.
Investors can sign up to Investor Meet Company to watch the Company's previous
webinars and be notified of upcoming events via the following link:
https://www.investormeetcompany.com/atlantic-lithium-limited/register-investor
(https://www.investormeetcompany.com/atlantic-lithium-limited/register-investor)
Sustainability
During the period, the Company hosted a visit to the Project site, detailing
the plans for the proposed Ewoyaa Lithium Mine, for several key local
stakeholders.
On International Women's Day, members of the Atlantic Lithium in-country team
were proud to represent the Company at a Women in Mining breakfast hosted by
the Australian High Commission to Ghana in Accra. The event aimed to promote
the mining industry as a career choice for women in Ghana and was attended by
Ghana's Ministry of Lands and Natural Resources and the Minerals Commission.
In March, donations were made by the Company to support a PV lighting
programme in the region and to the Central Regional Coordinating Council and
Mfantseman Municipal Assembly to support the celebration of the 66(th)
Independence Day.
Share Capital changes - Ordinary Shares, Options and Performance Rights
On 31 March 2023, 7,000,000 unlisted options were issued to the Directors
following approval by shareholders. Details of the unlisted options are as
follows:
Director No of Options Strike Price Expiry Date
Mr Neil Herbert 2,000,000 60 pence 2 years from date of issue
Mr Lennard Kolff 2,000,000 60 pence 2 years from date of issue
Ms Amanda Harsas 2,000,000 60 pence 2 years from date of issue
Mr Stuart Crow 1,000,000 60 pence 2 years from date of issue
Directors of the Company purchased the following ordinary shares in the market
during the quarter:
· 1,883,177 ordinary shares - Mr Neil Herbert
· 1,338,129 ordinary shares - Ms Amanda Harsas
· 23,508 ordinary shares - Mr Lennard Kolff
On 6 April 2023, 3,500,000 ordinary shares of no par value each in the Company
were issued at a price of 30 pence per share as a result of the exercise of
unlisted ESOP options (granted on 9 April 2021). Amanda Harsas, Finance
Director & Company Secretary, acquired 2,500,000 new Ordinary Shares at a
price of 30p each as a result of the exercise of ESOP options, for a total
consideration of £750,000.
A summary of movement and balances of equity securities between 1 January 2023
and date of this report is as follows:
Ordinary Shares Unquoted Options Unquoted performance rights
On issue at start of Quarter 605,741,660 54,500,000 2,700,000
Options issued (31 March 2023) 7,000,000
Shares issued - Exercise of ESOP options (6 April 2023) 3,500,000 (3,500,000)
Total Securities on issue at date of this report 609,241,660 58,000,000 2,700,000
Compliance
During the quarter, the Company spent A$3.1 million on its exploration and
feasibility activities for its Ewoyaa Lithium Project in Ghana. This included
A$1.2 million on the Front-End Engineering Design. Exploration and feasibility
study activities are 50% funded by Piedmont Lithium Inc. and Capex 100% funded
as part of the partnership arrangement announced on 1 July 2021.
The Dual Listing Prospectus in the previous quarter (30 August 2022) was a
sell-down of the Company's existing shares (Sell-Down) rather than an issue of
new Shares. The Company and SaleCo entered into agreements with those security
shareholders who wished to participate in the Sell-Down, including several
option holders who exercised their options and sold their resulting Shares as
part of the Sell-Down.
According, the sale of the shares itself did not raise any cash for the
Company but raised approximately A$4.5 million (before costs) from the
exercise of the Sell-Down Options.
The sale proceeds of A$13.3 million since the date of its admission to ASX
official list on 21 September has been utilised as follows.
Actual Budget Variance
Offer 22,850,000 at $0.58c per share $13,253,000 $13,253,000 $0
Distributed to Selling Shareholders (8,783,466) (8,873,466) $0
Conversion Proceeds remitted to Atlantic at Completion $4,469,534 $4,469,534 $0
Share Issue Costs (795,180) (795,180) $0
Definitive Feasibility Study of Ewoyaa Lithium Project (1,105,472) (1,105,472) $0
Exploration Expenditure (1,442,215) (1,442,215) $0
Remaining $1,126,667 $1,126,667 $0
The Company will use the above Conversion Proceeds (after costs) and existing
funds to explore and develop the Company's mineral lithium interests.
Appendix 5B expenditure disclosure
As at end 31 March 2023, the Company had cash resources of A$16.0 million and
no debt. Exploration and evaluation cash expenditure on the Project during the
quarter was A$3.1 million.
Piedmont Lithium Inc. funded A$1.2 million in the quarter with A$3.2 million
reimbursed subsequent to 31 March 2023.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
ATLANTIC LITHIUM LIMITED
ABN Quarter ended ("current quarter")
17 127 215 132 31 March 2023
Consolidated statement of cash flows Current quarter Year to date
$A'000
(9 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (310) (1,067)
(e) administration and corporate costs (1,188) (4,353)
1.3 Dividends received (see note 3) - -
1.4 Interest received - -
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - -
1.9 Net cash from / (used in) operating activities (1,498) (5,420)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (11) (281)
(d) exploration & evaluation (3,075) (15,006)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: -
(a) entities
(b) tenements -
(c) property, plant and equipment -
(d) investments -
(e) other non-current assets -
2.3 Cash flows from loans to other entities -
2.4 Dividends received (see note 3) -
2.5 Other - Piedmont Contributions from farm-in arrangement 1,242 9,898
2.6 Net cash from / (used in) investing activities (1,844) (5,389)
3. Cash flows from financing activities -
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities -
3.3 Proceeds from exercise of options - 4,626
3.4 Transaction costs related to issues of equity securities or convertible debt (68) (1,744)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities (68) 2,882
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 19,051 23,882
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,498) (5,420)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (1,844) (5,389)
4.4 Net cash from / (used in) financing activities (item 3.10 above) (68) 2,882
4.5 Effect of movement in exchange rates on cash held 341 27
4.6 Cash and cash equivalents at end of period 15,982 15,982
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 15,982 19,050
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash - 1
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 15,982 19,051
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included -
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,498)
8.2 (Payments for exploration & evaluation classified as investing activities) (3,075)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (4,572)
8.4 Cash and cash equivalents at quarter end (item 4.6) 15,982
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 15,982
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 3.5
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7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the
current level of net operating cash flows for the time being and, if not, why
not?
Answer:
NA
8.8.2 Has the entity taken any steps, or does it propose to take
any steps, to raise further cash to fund its operations and, if so, what are
those steps and how likely does it believe that they will be successful?
Answer:
NA
8.8.3 Does the entity expect to be able to continue its operations
and to meet its business objectives and, if so, on what basis?
Answer:
NA
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 28 April 2023
Authorised by: Authorised by the Board of Atlantic Lithium Limited
Notes
1. This quarterly cash flow report and the
accompanying activity report provide a basis for informing the market about
the entity's activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes to
disclose additional information over and above the minimum required under the
Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been
prepared in accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as
cash flows from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release
to the market by your board of directors, you can insert here: "By the board".
If it has been authorised for release to the market by a committee of your
board of directors, you can insert here: "By the [name of board committee - eg
Audit and Risk Committee]". If it has been authorised for release to the
market by a disclosure committee, you can insert here: "By the Disclosure
Committee".
5. If this report has been authorised for release
to the market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
(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
production targets and Ore Reserves is extracted from the pre-feasibility
study announcement, dated 23 September 2022, and relating to the Mineral
Resource Estimate of 35.3 Mt @ 1.25% Li(2)O for Ewoyaa is extracted from the
announcement dated 1 February 2023, both of which are available at
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 production
targets, Mineral Resources and Ore Reserve estimates in the Announcements
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
the Announcements.
For any further information, please contact:
Atlantic Lithium Limited Tel: +61 2 8072 0640
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company Secretary)
www.atlanticlithium.com.au (http://www.atlanticlithium.com.au)
IR@atlanticlithium.com.au
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Nominated Adviser
Jeff Keating
Charlie Bouverat
Canaccord Genuity Limited Tel: +44 (0) 20 7523 4500
Joint Company Broker
Raj Khatri
James Asensio
Harry Rees
Liberum Capital Limited Tel: +44 (0) 20 3100 2000
Joint Company Broker
Scott Mathieson
Edward Thomas
Kane Collings
Yellow Jersey PR Limited Tel: +44 (0)20 3004 9512
Charles Goodwin
Bessie Elliot
atlantic@yellowjerseypr.com (mailto:atlantic@yellowjerseypr.com)
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. for US$103m towards the development of the Ewoyaa Project. Based
on the Pre-Feasibility Study, the Ewoyaa Project has indicated Life of Mine
revenues exceeding US$4.84bn, producing a spodumene concentrate via simple
gravity only process flowsheet.
Atlantic Lithium holds 560km(2) & 774km(2) of tenure across Ghana and
Côte d'Ivoire respectively, comprising significantly under-explored, highly
prospective licences.
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