REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
24/04/2024 07:00
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RNS Number : 7914L Atlantic Lithium Limited 24 April 2024
24 April 2024
Quarterly Activities and Cash Flow Report
for the quarter ended 31 March 2024
Atlantic Lithium looks ahead to major near-term value-drivers as it advances
the Ewoyaa Lithium Project towards shovel-readiness
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 Quarterly Activities and Cash Flow Report for the
period ended 31 March 2024.
Highlights from the Reporting Period:
Project Development:
- Overwhelmingly strong local community support demonstrated at
the Environmental Protection Agency ("EPA") Scoping Public Hearing in respect
of the Company's Ewoyaa Lithium Project ("Ewoyaa" or "the Project") in Ghana.
- Completion and submission of Ewoyaa Feldspar Study and
Downstream Conversion Study to Ghana's Minerals Commission, as agreed under
the terms of the grant of the Mining Lease for the Project.
- Engagement with industry-leading engineering firms with proven
experience in Ghana ahead of tender process for the award of the Engineering,
Procurement, and Construction Management ("EPCM") contract.
- Further key strategic appointments in support of mine
development.
Exploration:
- Assay results received for a total of 9,734m of drilling
completed in 2023 over the new Dog-Leg target, Okwesi, Anokyi and Ewoyaa
South-2 deposits, which sit outside of the current JORC (2012) compliant
35.3Mt @ 1.25% Li(2)O Mineral Resource Estimate ("MRE")(1) for the Project.
· Results reported during the period represent the final results
for the 2023 drilling season, with a total of 25,898m drilled throughout the
year.
· Multiple high-grade and broad drill intersections reported in
results, including at Dog-Leg, where drilling intersected a shallow-dipping,
near surface mineralised pegmatite body with true thicknesses of up to 35m.
· Highlight intersections include 69m at 1.25% Li(2)O from 45m and
83m at 1% Li(2)O from 36m at Dog-Leg.
- Completion of reverse circulation ("RC") and diamond core ("DD")
resource growth drilling at the Dog-Leg target, with assays pending.
- Results of drilling completed in 2023 and results pending for
2024 to be incorporated into a MRE upgrade, targeted during H2 2024.
- Completion of 3,177m of plant site sterilisation drilling, with
no mineralisation intersected, providing confidence in the proposed plant site
location.
Post-period end:
- Final approval received to commence field work at the
newly-granted Senya Beraku prospecting licence.
- Promotion of Exploration Manager Iwan Williams to General
Manager, Exploration and Country Manager Abdul Razak to Exploration Manager,
Ghana following the decision of Head of Business Development & Chief
Geologist Len Kolff to step down from his roles at the Company.
· Changes to the exploration team focused on enabling the
advancement of the Company's exploration asset pipeline and the evaluation of
new value-accretive opportunities to ensure the long-term growth of the
Company.
Corporate:
- Completion of the Minerals Income Investment Fund of Ghana's
("MIIF") Subscription for 19,245,574 Atlantic Lithium shares for a value of
US$5m, representing Stage 1 of MIIF's agreed total US$32.9 million Strategic
Investment to expedite the development of the Project towards production.
- Strong interest for spodumene concentrate to be produced at
Ewoyaa continues to be demonstrated from a range of industry players around
the world through the Company's ongoing competitive offtake partnering process
to secure funding for a portion of the remaining 50% available feedstock from
Ewoyaa.
· Formal bids from remaining interested parties expected to be
received in the coming weeks ahead of final negotiations.
- Purchase of 24.3m Atlantic Lithium shares at a premium by major
shareholder Assore International Holdings ("Assore") from strategic funding
partner Piedmont Lithium Inc. (NASDAQ: PLL; ASX: PLL, "Piedmont").
- Further purchase of the Company's shares from members of the
Company's senior leadership team, equating to a total value of A$5,192,393
(£2,794,015) since March 2023.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"With our sights firmly set on breaking ground at the Ewoyaa Lithium Project
later this year, Atlantic Lithium remains fully focused on activities that
de-risk the Project and move Ewoyaa closer to shovel-readiness.
"Key to achieving this milestone is the success of the ongoing permitting
process, which is advancing as anticipated. We are proud to note the
overwhelming support of our local communities, who, as demonstrated during the
recent EPA Scoping Public Hearing, are eager to see Ewoyaa deliver the
generational benefits expected to be brought about from lithium production in
their municipality.
"Following the completion of its US$5m investment in the Company, we are
delighted to welcome the Minerals Income Investment Fund of Ghana to the
Atlantic Lithium share register as a highly valued local stakeholder and key
funding partner. MIIF's subscription represents the first stage of its planned
US$32.9m total investment, expected to expedite the development of the
Project. We continue to work closely with MIIF to complete the remainder of
its planned Project-level investment in due course.
"Significant work in respect of the agreed terms of the grant of the Mining
Lease for the Project has also been completed during the period. Both the
Feldspar Study and Downstream Study have been finalised and submitted to the
Minerals Commission, and we are working with the Ghana Stock Exchange and
associated parties to enable our listing on the GSE as soon as possible.
"Concurrent to these, we continue to enhance the value of the Project; both
through drilling completed in 2023 and planned for the remainder of 2024.
Drilling completed in 2023 has delivered encouraging results, including new
targets for follow-on work, to be undertaken in H2 2024. We look forward to
incorporating the 2023 results and results to be received from drilling
planned for H2 2024 into a MRE update later this year.
"I would like to congratulate Iwan Williams and Abdul Razak on their
promotions, to General Manager, Exploration and Exploration Manager, Ghana,
respectively, following Len's decision to step down from his roles at the
Company. Iwan and Razak have led the Company's exploration activities
alongside Len since before the delivery of the Maiden MRE at Ewoyaa in 2020,
and are, therefore, well-credentialled to lead the Company's exploration
efforts, focused primarily on advancing our current portfolio of assets in
West Africa, as well as assessing new opportunities in Ghana and elsewhere.
"On behalf of the Board, I would also like to thank Len for his significant
contributions to the leadership of the Company throughout his nine years with
Atlantic Lithium. His expertise has been fundamental to getting us to where we
are today, notably his role in the discovery of the Project and for stepping
up to assume the role of Interim Chief Executive Officer following the
untimely passing of the Company's founder, Vincent Mascolo. I wish him every
success in his future endeavours.
"Looking forward, we have a number of other major catalysts in the months
ahead of us. These include the conclusion of the competitive offtake
partnering process for a portion of Ewoyaa's remaining offtake available,
which will serve as a major funding milestone for the Company, the
ratification of the Mining Lease by parliament and, in line with the ongoing
permitting process, the grant of the final permits; namely the EPA Permit and
Mine Operating Permit, which are required by the Company to enable the
commencement of construction at Ewoyaa.
"We look forward to updating the market on our progress in due course."
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.
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/7914L_1-2024-4-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7914L_1-2024-4-24.pdf)
Ewoyaa Lithium Project, Ghana, West Africa
During the period, the Company continued to advance its flagship project, the
Ewoyaa Lithium Project, through the permitting phase towards production. The
Project is on track to become Ghana's first operating lithium mine, and one of
the largest hard rock spodumene concentrate mines globally(2).
The Project has secured project development funding via an earn-in agreement
with Piedmont. Ewoyaa, located in Ghana, West Africa, approximately 100km
southwest of the capital of Accra, comprises eight main deposits, including
Ewoyaa, Okwesi, Anokyi, Grasscutter, Abonko, Kaampakrom, Sill and Bypass. The
Project is well located, being adjacent to operational infrastructure
including within 1km of the Takoradi - Accra N1 highway, 110km from the
Takoradi deep-sea port and adjacent to grid power, within the pro-mining
jurisdiction of Ghana (refer Figure 1).
Figure 1: Location of the Ewoyaa Lithium Project
Interest in Tenements
At the end of the quarter ending 31 March 2024, the Company had an interest in
the following tenements:
Tenement Number Tenement Principal Grant Date/ Expiry Date Term Change during Quarter
Name
Holder
Application Date
Ghana
PL3/67 Apam East Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
PL3/92 Apam West Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
RL 3/55 Mankessim Barari DV Ghana Limited 27.07.21 26.07.24 3 years None
(90% Atlantic)
PL3/102 Saltpond Joy Transporters Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/109 Mankessim South Green Metals Resources Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/106 Cape Coast Joy Transporters Limited 15.11.21 14.11.24 3 years None
(100% Atlantic)
RML-N-3/181 Senya Beraku Green Metals Resources Limited (100% Atlantic) 09.11.23 08.11.26 3 years None
PL-I-3/15 Bewadze Green Metals Resources Limited 09.11.23 08.11.26 3 years None
(100% Atlantic)
ML-3/239 Mankessim Mining Lease Barari DV Ghana Limited (90% Atlantic) 20.10.23 19.10.38 15 years None
Ekrubaadze PL Green Metals Resources Limited 03.10.23 Application None
(100% Atlantic)
Asebu (Winneba North) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadze (Winneba South) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadzi Obotan Minerals Company Limited 15.03.18 Application None
(JV MODA Minerals Limited)
Onyadze Green Metals Resources Limited 23.08.21 Application None
(100% Atlantic)
Ivory Coast
PR695 Rubino Khaleesi Resources SARL 20.10.16 Application None
(100% Atlantic)
PR694 Agboville Khaleesi Resources SARL 20.10.16 Application None
(100% Atlantic)
March Quarter Activities
Project Development
EPA Public Hearing
In accordance with the Project's permitting process and following the
Company's submission of the Scoping Report to the Ghana Environmental
Protection Agency ("EPA"), in February 2024, the EPA held the first public
hearing (scoping) in respect of the Ewoyaa Lithium Project.
The event, which was held in Ewoyaa and forms a key part of the required
Environmental Impact Statement approval process, welcomed over 1,000
representatives, including Chiefs, elders and community members of the
Project's catchment area, plus government officials and other key
stakeholders.
Figure 2: General Manager, Operations, Ahmed-Salim Adam
presenting at the EPA Scoping Public Hearing
During the hearing, members of the Company's project leadership team provided
further detail to the planned activities at Ewoyaa, as well as outlining the
considerable socio-economic benefits that the Project is expected to bring to
the Central Region, while pledging to maintain close collaboration with all
local stakeholders to ensure that their best interests are acted upon. EPA
Deputy Executive Director, Mr Ransford Sekyi, explained the permitting
processes and invited attendees to present any queries or concerns they may
have, which were addressed by the Company in the public forum. The
overwhelmingly positive engagement demonstrated at the hearing indicated the
strong support for the Project within the local community.
Earlier in the quarter, in an engagement led by Deputy Minister George Duker
with local traditional leaders and a delegation from the Ministry of Lands and
Natural Resources and the Minerals Commission, the Central Regional House of
Chiefs also provided its endorsement for the advancement of the Project.
Following the completion of impact studies during the period, the Company
remains on schedule to submit the Environmental Impact Statement before the
end of Q2 2024, following which the EPA is expected to organise a second and
final public hearing.
The Company is also currently working to finalise the Mine Operating Plan,
which is a requirement for the grant of the Mine Operating Permit, in advance
of parliamentary ratification of the Mining Lease and the grant of the EPA
Permit.
Project Studies
In satisfaction with the terms of the grant of the Ewoyaa Mining Lease, the
Company has now completed and submitted to the Minerals Commission both i) the
Feasibility Study ("Feldspar Study") to assess the viability of producing and
processing feldspar feedstock as by-product of spodumene concentrate
production at the Project, and ii) the Scoping study ("Downstream Conversion
Study") to evaluate the economic benefits and viability of downstream lithium
conversion in Ghana.
The Company confirms that the results of the Feldspar Study support its
current intentions to produce feldspar at Ewoyaa, which the Company plans to
supply to the local Ghanaian ceramics market. The Company believes Ewoyaa
represents a major source of domestic feldspar in Ghana. Through the supply of
feldspar produced at Ewoyaa to the local market, Atlantic Lithium aims to
support the growth of Ghanaian businesses associated with the industry, and
the local economy as a whole.
Following the submission of the Downstream Conversion Study to the Minerals
Commission, the Company continues to closely collaborate with the key parties
in Ghana, including the Minerals Commission, with regards to supporting
Ghana's objectives of developing lithium resources of sufficient scale and
longevity to facilitate downstream processing.
In addition, as also agreed under the terms of the Mining Lease, the Company
continues to advance the necessary proceedings with the intention to list the
Company's shares to trading on the Ghana Stock Exchange as soon as
practicable.
Project Engineering
As per the terms of its engagement, multi-disciplinary engineering, project
delivery and operations management group DRA Projects ("DRA") is currently in
the process of finalising its value-engineering reports on the Front-End
Engineering Design ("FEED") package undertaken for the Ewoyaa Definitive
Feasibility Study ("DFS") and is preparing an Engineering, Procurement,
Construction, and Management ("EPCM") contract, and the associated individual
packages, which will serve as the foundation for the execution of the Project.
Australian-based engineering firm Primero Group ("Primero") was previously
providing Front-End Engineering Design ("FEED") services to the Company in
respect of the proposed processing plant at Ewoyaa, following the award of the
FEED contract in December 2022. Primero was selected for the FEED on the basis
of the firm's experience in delivering Dense Media Separation ("DMS")
processing plants with comparable flow sheets to Ewoyaa's and the close
proximity of the company's office with the Atlantic Lithium team in Perth,
Australia.
Ahead of the tender process for the award of the EPCM contract for the
construction of the Project, the Company has decided to now engage with
engineering houses with proven EPCM experience in Ghana specifically. The
Company intends to commence the tender process following the receipt of the
reports from DRA, which is expected to enable the award of the EPCM contract
post ratification of the Ewoyaa Mining Lease.
With stand-out industry experience of DMS processing plant construction in
Ghana, West Africa and internationally, spanning several decades, DRA is
expected to be among the companies participating in the EPCM tender process.
Project Funding
Under the Project's current funding arrangements, and considering a total
development expenditure of US$185m for the Project, as indicated in the DFS,
Piedmont is required to contribute the first US$70m of development expenditure
as sole funding, and 50% of all development expenditure thereafter.
A portion of Piedmont's expenditure obligations across certain categories of
development expenditure relating to the Project remains outstanding (US$2.1m
for the period from October to March 2024; refer Company's previous Quarterly
Activities and Cash Flow Report, announced on 31 January 2024). Piedmont has
contributed 50% of the development expenditure across these categories for the
same period. The Company remains actively engaged in discussions with Piedmont
concerning these amounts and an established process exists for resolution.
Exploration and studies activities are currently jointly funded by the Company
and Piedmont, with neither party having any outstanding expenditure
obligations.
During the period of January to March 2024, Piedmont contributed a total of
US$7.0m towards the funding of the Project.
Strategic Hires
The Company continues to recruit actively for positions, both in Ghana and in
Australia, across all elements of the business, deepening the expertise within
the team and intended to support the Company's objectives. For its activities
in Ghana, across all functions, Atlantic Lithium is focused on prioritising
local recruitment, which it considers as a key means to ensure maximum benefit
generated by the Project is delivered to the Central Region and to Ghana more
broadly.
Exploration
Results from Drilling Completed in 2023
During the period, the Company received assay results for a total of 9,734m of
extensional resource reverse circulation ("RC") drilling completed at the new
Dog-Leg target, Okwesi, Anokyi and Ewoyaa-South 2 deposits, which sit outside
of the current 35.3Mt @ 1.25% Li(2)O MRE(1). These represent the final results
from drilling undertaken during 2023, with a total of 25,898m drilled.
Broad and high-grade intersections were reported, with new mineralisation
defined at the Dog-Leg target and mineralisation extended at depth, outside of
the current MRE, at the Okwesi, Anokyi and Ewoyaa-South 2 deposits,
respectively (refer Table 1).
Table 1: Drill intersection highlights at greater than 10 Li x m, reported
at a 0.4% Li(2)O cut-off and maximum of 4m of internal dilution
Hole_ID From_m To_m Interval_m Hole depth_m Li(2)O% Intersection Comment metal content Li x m Hole Purpose Deposit
GRC1024 45 114 69 250 1.25 GRC1024: 69m at 1.25% Li(2)O from 45m 86.25 Resource Drilling Dog Leg
GRC1020 36 119 83 250 1.00 GRC1020:83m at 1% Li(2)0 from 36m 83.00 Resource Drilling Dog Leg
GRC1017 87 134 47 156 1.05 GRC1017: 47m at 1.05% Li(2)O from 87m 49.35 Resource Drilling Dog Leg
GRC1027 160 194 34 230 1.02 GRC1027: 34m at 1.02% Li(2)O from 160m 34.68 Resource Drilling Dog Leg
GRC0996 29 53 24 80 1.21 GRC0996: 24m at 1.21% Li(2)O from 29m 29.04 Resource Drilling EWY_Sth2
GRC0994 105 116 11 135 1.89 GRC0994: 11m at 1.9% Li(2)O from 105m 20.82 Resource Drilling Okwesi
GRC1023 159 183 24 212 0.81 GRC1023: 24m at 0.81% Li(2)O from 159m 19.44 Resource Drilling Dog Leg
GRC1024 141 163 22 250 0.85 GRC1024: 22m at 0.85% Li(2)O from 141m 18.78 Resource Drilling Dog Leg
GRC1020 139 160 21 250 0.87 GRC1020: 21m at 0.87% Li(2)O from 139m 18.27 Resource Drilling Dog Leg
GRC0989 108 120 12 140 1.48 GRC0989: 12m at 1.49% Li(2)O from 108m 17.79 Resource Drilling Okwesi
GRC1030 111 127 16 200 1.08 GRC1030: 16m at 1.08% Li(2)O from 111m 17.27 Resource Drilling Dog Leg
GRC0983 38 50 12 120 1.33 GRC0983: 12m at 1.34% Li(2)O from 38m 16.01 Resource Drilling EWY_Sth2
GRC1000 22 31 9 120 1.68 GRC1000: 9m at 1.68% Li(2)O from 22m weathered pegmatite 15.08 Resource Drilling EWY_Sth2
GRC1005 135 143 8 160 1.74 GRC1005: 8m at 1.75% Li(2)O from 135m 13.95 Resource Drilling Okwesi
GRC0986 122 131 9 150 1.50 GRC0986: 9m at 1.51% Li(2)O from 122m 13.54 Resource Drilling Okwesi
GRC1032 83 95 12 180 1.11 GRC1032: 12m at 1.11% Li(2)O from 83m 13.29 Resource Drilling Dog Leg
GRC0990 142 151 9 170 1.39 GRC0990: 9m at 1.39% Li(2)O from 142m 12.48 Resource Drilling Okwesi
GRC0991 150 160 10 180 1.19 GRC0991: 10m at 1.2% Li(2)O from 150m 11.93 Resource Drilling Okwesi
GRC0992 148 158 10 175 1.13 GRC0992: 10m at 1.14% Li(2)O from 148m 11.32 Resource Drilling Anokyi
Note: Metal content is based on intercept rather than estimated true width.
For estimated true widths, refer to announcements of 5 February 2024 and 19
March 2024.
The results at the Dog-Leg target, in particular, are note-worthy as they
define a new, shallow-dipping, near surface mineralised pegmatite body outside
of the current MRE(1) with true thicknesses up to 35m, providing potential to
add significant near surface resource tonnes below the current pit shells,
with likely low stripping ratios (refer Figure 3).
Figure 3: Near-surface mineralised pegmatite body interpreted
in drilling just below the current pit floor, as per the mine plan developed
for the DFS for the Project, and as an extension outside of the current MRE(1)
at the new Dog-Leg target
Figure 4: Location of the new Dog-Leg target and planned 2024
drilling within the 13km strike Mine Corridor
In addition, the Company continues to advance its in-house geochemical
analysis and review of the 20,000m auger drilling and soils programme
completed in 2023 over the extensions to the known pegmatite swarm,
exploration targets within the Saltpond licence and the Cape Coast licence.
Ongoing 2024 Drilling Programme
With current activities focused on supporting the mine build, the Company
intends to recommence resource extension and exploration drilling in H2 2024
through a total 7,372m drilling programme, comprising 5,982m of resource
extension drilling and 1,390m of exploration drilling.
During the period, to follow up on the encouraging results from drilling
completed in 2023, the Company completed 804m of RC drilling and 70m of
diamond core drilling at Dog-Leg, with assays pending, expected in Q2 2024.
The Company also completed plant site sterilisation drilling for a total of
3,177m in 21 holes, with no mineralisation intersected, providing confidence
in the proposed plant site location.
Included in the drilling programme for the remainder of 2024, the Company
intends to RC drill test the new Otsir target, which was defined in auger
drilling completed in 2023 (refer Figure 4).
The Company intends to incorporate the results of drilling completed in 2023
and results pending for 2024 into a MRE upgrade for the Project, targeted
during H2 2024.
Concurrently, the Company is continuing its regional exploration programmes to
advance the exploration project pipeline, with mapping and rock chip sampling
now underway over the Cape Coast licence and detailed surface mapping of
access roads and drill pads underway over the 13km 'mine corridor' (refer
Figure 4).
Senya Beraku Prospecting Licence
Following the grant of the Senya Beraku prospecting licence (refer Figure 5)
to the Company's subsidiary Green Metals Resources Limited in Q4 2023, the
Company was granted, post-period, final approval required to enable the
commencement of field work over the licence.
The Company is currently undertaking a community engagement programme to
inform the community of the Company's planned activities, after which field
programmes, including soil sampling, mapping and rock chip sampling, are
expected to commence.
The award of the Senya Beraku licence provides the Company with exclusive
access to explore 82.11km(2) of new, prospective, under-explored tenure.
Figure 5: Atlantic Lithium granted and under-application
tenure in Ghana
Exploration Team Changes
After nine years with the Company, Head of Business Development and Chief
Geologist Len Kolff has taken the decision to step down from his roles and
will leave Atlantic Lithium to pursue other business interests.
The Board and Management team would like to thank Len for his extensive input
throughout his time working with Atlantic Lithium, which have played a
significant role in advancing the Company to where it is today. Notably, this
includes leading the exploration team to make the initial discovery of the
Project in 2018; subsequently driving the Company's exploration and evaluation
programmes across Ghana to de-risk and add value to the Project; and
establishing the Company's portfolio of exploration assets and further value
addition opportunities, in Ghana and elsewhere.
Len also assumed the role of Interim Chief Executive Officer in 2022, stepping
up at a crucial time in the Company's history following the untimely passing
of its founder. His leadership during this challenging period was fundamental
in ensuring the continued success of the Company. The Board and Management
team wish him every success in his future endeavours.
In line with Len's departure, Iwan Williams, who has spent over five years of
his 25+ year career as Exploration Manager with Atlantic Lithium, during which
time he had overseen the delivery of the Project's Maiden MRE in January 2020
and subsequent MRE upgrades at Ewoyaa, will assume the role of General
Manager, Exploration. In this role, Iwan will be responsible for advancing the
Company's exploration portfolio in West Africa and the evaluation and
generation of new value-accretive opportunities to support the long-term
growth of the Company. His focus will be primarily on Ghana, while also
assessing hard rock lithium opportunities outside of Ghana.
Country Manager Abdul Razak, who has also been responsible, alongside Len and
Iwan, for leading the Company's in-country exploration team in the discovery
and development of the Ewoyaa Lithium Project over the past eight years, will
assume the role of Exploration Manager, Ghana. Abdul Razak has considerable
exploration, resource evaluation and project management experience in Ghana,
having worked with a number of the gold majors operating in the country over
the course of his 20+ year career.
Atlantic Lithium is proud to have a fully Ghanaian in-country team, which
demonstrates the Company's commitment to maintaining the highest possible
levels of local employment.
Corporate
MIIF Strategic Investment
Stage 1 - Completion of US$5m Subscription
During the period, the Minerals Income Investment Fund of Ghana ("MIIF")
subscribed for 19,245,574 Atlantic Lithium shares at a price of US$0.2598
(A$0.39 / £0.20) per share ("Subscription"), for a total consideration of
US$5m, intended to be used towards development funding for the Project.
The completion of the Subscription represents Stage 1 of MIIF's agreed
US$32.9m total investment ("Strategic Investment") in the Company and its
Ghanaian Subsidiaries to expedite the development of the Project and the
broader Cape Coast Lithium Portfolio in Ghana ("Ghana Portfolio") towards
production.
As agreed under the terms of the Subscription, 9,622,787 options were granted
to MIIF with an exercise price of US$0.3637 and an expiry date of 23 July
2025.
MIIF is also entitled to nominate one person to the Company's Board of
Directors.
Stage 2 - US$27.9m Project-level Investment
Under the terms of Stage 2 of its Strategic Investment, and subject to the
Company reaching a binding agreement with MIIF, MIIF has agreed to invest a
further US$27.9m in the Company's Ghanaian subsidiaries to acquire a 6%
contributing interest in the Ghana Portfolio, inclusive of the Project.
The US$27.9m Project-level investment and the contributing interest is
expected to take the form of funding of development, exploration and studies
expenditure to support the advancement of the Project.
The Company is currently working closely with MIIF to finalise the
Project-level investment.
Competitive Offtake Partnering Process
The Company has continued to advance the competitive offtake partnering
process, which is being led by global investment bank Macquarie Capital, to
secure funding for a portion of the remaining 50% available feedstock from
Ewoyaa.
The objective of the process is to attract funding offers to sufficiently
cover the Company's allocation of development expenditure for the Project, to
expedite and de-risk the development of the Project, realise attractive terms
for any offtake contracted and secure a well credentialled partner that will
support the Company's and Ghana's objectives of supplying lithium into the
global electric vehicle market.
Following the completion of Stage 1 of the process in January 2024, which
comprised early preparation and initial engagement with over 80 interested
parties, the Company is advancing a more detailed Stage 2 due diligence phase
with its preferred parties.
Through the process, the Company has indicated its preferred terms of up to
500,000t of spodumene concentrate to be contracted over a 3-5-year period,
using a favourable market-based pricing mechanism, for a consideration of up
to US$100m in the form of a pre-payment arrangement, which would be expected
by the Company to sufficiently cover its allocation of development expenditure
for the Project.
Terms of the non-binding indicative offers proposed by the parties that were
taken forward into Stage 2 all meet the Company's expressed criteria.
Formal bids from the remaining interested parties are expected to be received
in the coming weeks for consideration, ahead of final negotiations, which
forms Stage 3, the final phase of the process.
The Company remains on track to announce the outcome of the process and its
preferred offtake partner in the coming months.
The process has demonstrated the resoundingly strong demand for Ewoyaa's
lithium products globally, with interest received from all types of industry
players, including OEMs, traders, chemical converters and battery
gigafactories.
Investors should note that, until a formal agreement is made and announced to
the market, there can be no guarantee that an agreement of any sort will be
signed as a result of the ongoing process.
Assore Share Purchase
During the period, the Company's largest shareholder, Assore Interntional
Holdings ("Assore"), increased its stake in Atlantic Lithium through the
purchase of 24.3m Atlantic Lithium shares from the Company's strategic funding
partner, Piedmont, at a premium to the share price at the time. Assore's and
Piedmont's holdings now sit at 27.6% and 5%, respectively, following the
transaction.
The Company believes that Assore's purchase of Atlantic Lithium shares at a
premium reflects their inherent belief in the Company's substantial value
potential, which is yet to be realised.
Director Purchases
Post-period, Executive Chairman Neil Herbert purchased in the market a total
of 133,000 ordinary shares in the Company of no par value each, equating to a
value of £24,771 (A$47,590).
Following the share purchase, Directors and persons discharging managerial
responsibilities ("PDMR"; or Key Management Personnel, "KMP") of the Company
have purchased a total of 10,152,227 shares equating to a value of A$5,192,393
(£2,794,015) since March 2023.
Conferences Attended
The Company attended the following conferences and events during the period:
- Mining Indaba, Cape Town (5-8 February)
- Red Cloud's Pre-PDAC Mining Showcase, Toronto (29 February - 1
March)
- PDAC, Toronto (3-6 March)
Exploration-focused Webinar
On 23 April 2024, the Company held an investor webinar focused on its
exploration activities, entitled, "Exploration: A Deep Dive into Ewoyaa",
consisting of i) an overview of the Company's exploration methodology and how
it made the initial discovery of and has since developed the Ewoyaa Lithium
Project in Ghana ii) a summary of exploration activities undertaken across the
Cape Coast Lithium Portfolio to-date; and iii) an outline of near-term
opportunities at the Project that present potential value drivers for the
Company.
A recording of the webinar will shortly be made available on the Company's
website.
Sustainability
International Women's Day
Acknowledging the immense contributions that women make every day to
communities, workplaces and economies, Atlantic Lithium was proud to celebrate
International Women's Day through its attendance at events in Australia and
Ghana.
Atlantic Lithium is committed to being an equal opportunity employer and is
proactive in its efforts to drive inclusion, empowerment and women's
advancement in the mining sector.
Members of the Atlantic Lithium team, with guest of honour Mrs. Alexandra
Amoako-Mensah, attended the International Women's Day event hosted by the
Australian High Commission in Accra. During the event, Communication and
Corporate Affairs Manager Florence Bossman-Ammah spoke on a panel highlighting
the Atlantic Lithium's efforts towards enabling greater inclusion of women in
the industry.
Meanwhile, members of the team in Perth, Australia, were proud to attend an
event hosted by the Australasian Institute of Mining and Metallurgy
("AusIMM"), aimed at fostering collaboration, celebrating women's
achievements, and driving meaningful conversations around gender equality and
empowerment.
Figure 6: Mrs. Amoako-Mensah joins Australian High
Commissioner to Ghana, Ms. Berenice Owen-Jones (left image); Members of the
Atlantic Lithium team in Perth, celebrating International Women's Day at the
AusIMM event (right image)
Eid-ul Fitr
Post-period end, through an initiative led by Community Relations & Social
Performance Manager Dr Millicent Aning-Agyei, with support from the Company's
Marketing and Communications team, Atlantic Lithium made donations of food
items to five local, under-privileged Muslim communities ahead of Eid-ul Fitr
celebrations.
The Company prides itself on working in the best interests of the communities
in which it operates and recognises the significant potential positive impact
that it can have locally.
Share Capital Changes - Ordinary Shares, Options and Performance Rights
On 24 January 2024, 19,245,574 fully paid ordinary shares of USD0.2598
(A$0.39) were issued as a result of a subscription for shares by the Minerals
Income Investment Fund of Ghana.
On 24 January 2024, 9,622,787 unlisted options were granted to Minerals Income
Investment Fund of Ghana with an exercise price of USD0.3637 and an expiry
date of 25 July 2025.
Between 1 January and the date of this report, a total of 16,950,000 options,
that had been granted under the Company's Employee Share Option Plan, lapsed
unexercised.
A summary of movement and balances of equity securities between 1 January 2024
and date of this report is as follows:
Ordinary Shares Unquoted Options Unquoted performance rights
On issue at start of Quarter 630,423,479 32,650,000 -
Shares issued to Minerals Income Investment Fund of Ghana (24 January 2024) 19,245,574
Unlisted options issued to Minerals Income Investment Fund of Ghana (24 9,622,787
January 2024)
Employee Share Options lapsed (5 February 2024) (450,000)
Employee Share Options lapsed (02 April 2024) (500,000)
Employee Share Options lapsed (23 April 2024) (16,000,000)
Total Securities on issue at date of this report 649,669,053 25,322,787 9,298,935
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity: ATLANTIC LITHIUM LIMITED
ABN: 17 127 215 132 Quarter ended ("current quarter"): 31 March 2024
Consolidated statement of cash flows Current quarter Year to date (9 months)
$A'000
$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 (303) (2,420)
(e) administration and corporate costs (1,352) (5,679)
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 Income 99 99
1.9 Net cash from / (used in) operating activities (1,556) (8,000)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (195) (485)
(d) exploration, feasibility, and development (5,402) (18,716)
(e) investments - (154)
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - 10
(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 6,955 13,840
2.6 Net cash from / (used in) investing activities 1,358 (5,505)
3. Cash flows from financing activities 7,605 15,605
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 - -
3.4 Transaction costs related to issues of equity securities or convertible debt (75) (551)
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 7,530 15,054
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 9,664 15,346
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,556) (8,000)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 1,358 (5,505)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 7,530 15,054
4.5 Effect of movement in exchange rates on cash held 102 203
4.6 Cash and cash equivalents at end of period 17,098 17,098
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 17,088 9,661
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash 10 4
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 17,098 9,664
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 97
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 105
in item 2
6.1 & 6.2 are payments of salaries/bonuses/fees (including superannuation)
to related parties.
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) (1,556)
8.2 (Payments for exploration & evaluation classified as investing activities) (5,402)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (6,958)
8.4 Cash and cash equivalents at quarter end (item 4.6) 17,098
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 17,098
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.45
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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: N/A
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: N/A
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: N/A
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: 24 April 2024
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.
End Note
(1) Ore Reserves, Mineral Resources and Production Targets
The information in this half-year report 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 half-year report relating to
Ore Reserves of 25.6Mt @ 1.22% Li₂O and Production Targets is extracted from
the Ewoyaa Lithium Project Definitive Feasibility Study ("DFS"), announced by
the Company on 29 June 2023, and information in this announcement relating to
the Mineral Resource Estimate ("MRE") of 35.3Mt @ 1.25% Li₂O for Ewoyaa is
extracted from the Company's announcement dated 1 February 2023, both of which
are available at www.atlanticlithium.com.au
(http://www.atlanticlithium.com.au) . The MRE includes a total of 3.5Mt @
1.37% Li₂O in the Measured category, 24.5Mt @ 1.25% Li₂O in the Indicated
category and 7.4Mt @ 1.16% Li₂O in the Inferred category. The Company
confirms that all material assumptions and technical parameters underpinning
the MRE and 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 half-year report
or the announcements dated 1 February 2023, 29 June 2023 and 20 October 2023.
(2) Ewoyaa to become one of the largest spodumene concentrate producers
globally - Based on a comparison of targeted spodumene concentrate production
capacity (ktpa, 100% basis) of select hard rock spodumene projects globally
(refer Company presentation dated 8 September 2023).
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.
Information in this report relating to Mineral Resources was compiled by Shaun
Searle, a 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 being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and
is a Qualified Person under the AIM Rules. Mr Searle is a director of Ashmore.
Ashmore and the Competent Person are independent of the Company and other than
being paid fees for services in compiling this report, neither has any
financial interest (direct or contingent) in the Company. Mr Searle consents
to the inclusion in the report of the matters based upon the information in
the form and context in which it appears.
The reported Ore Reserves have been compiled by Mr Harry Warries. Mr Warries
is a Fellow of the Australasian Institute of Mining and Metallurgy and an
employee of Mining Focus Consultants Pty Ltd. He has sufficient experience,
relevant to the style of mineralisation and type of deposit under
consideration and to the activity he is undertaking, to qualify as a Competent
Person as defined in the 'Australasian Code for Reporting of Mineral Resources
and Ore Reserves' of December 2012 ("JORC Code") as prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and Metallurgy, the
Australian Institute of Geoscientists and the Minerals Council of Australia
and is a Qualified Person under the AIM Rules. Mr Warries gives Atlantic
Lithium Limited consent to use this reserve estimate in reports.
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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