REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
24/10/2024 16:45
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RNS Number : 5332J Atlantic Lithium Limited 24 October 2024
24 October 2024
Quarterly Activities and Cash Flow Report
for the quarter ended 30 September 2024
Atlantic Lithium secures key permits to advance flagship Ewoyaa Lithium
Project towards full permitting
Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, 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 30 September 2024.
Highlights
Project Development:
- Post-period end, significant progress made towards the
permitting of the Company's flagship Ewoyaa Lithium Project ("Ewoyaa" or "the
Project") in Ghana:
· Granted a Mine Operating Permit, representing the final
regulatory approval required prior to commencing construction of the Project.
· Issued a Land Use Certificate, detailing the approval of the land
within the Project's Mining Area to be rezoned for mining purposes, as
required prior to commencing construction and mining activities.
- Environmental Protection Agency ("EPA") environmental permit
granted in respect of the Project.
- Ewoyaa Mining Lease submitted to parliament to undergo the
necessary ratification process.
- Completion of the Front-End Engineering Design ("FEED") package
for the Project, undertaken with DRA Projects.
Exploration:
- Ewoyaa Mineral Resource Estimate increased to 36.8Mt at 1.24%
Li(2)O(1), reported in accordance with the JORC Code (2012).
- Completion of baseline soil and stream sediment sampling across
the Rubino and Agboville exploration licences in Côte d'Ivoire.
- Completion of soil geochemical sampling across the Senya Beraku
prospecting licence area in the eastern portion of the Company's Cape Coast
Lithium Portfolio in Ghana.
Corporate:
- Ongoing delay of parliament's ratification of the Ewoyaa Mining
Lease combined with the subdued lithium market environment continues to impact
Final Investment Decision timing, Minerals Income Investment Fund's ("MIIF")
Project-level investment and the Company's competitive offtake partnering
process to secure funding to sufficiently cover the Company's allocation of
development expenditure for the Project.
- Cash on hand at end of quarter was A$7.5m.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"Important steps have been made over recent months in line with our efforts to
advance Ewoyaa towards full permitting. Signifying the support of the Minerals
Commission, the EPA and our local stakeholders, the grant of the EPA permit
and Mine Operating Permit, respectively, represent critical approvals in the
permitting process and major de-risking milestones for the Project.
"The delay in ratification has impacted the offtake process and MIIF's
investment already and has forced us to make cuts to staff numbers and
expenditure across various non-essential departments. Nevertheless, we remain
confident in our ability to drive the Project through these headwinds towards
construction and operation. We now await the ratification of the Mining Lease
by Ghana's parliament, which will enable us to move the Project towards
Project FID.
"The parliamentary process is playing out in the public domain as we speak,
and we appreciate shareholders' patience as these developments unfold. We are
prepared for all eventualities and will update shareholders as appropriate. In
the meantime, we are continuing activities within our control to advance the
Project.
"We are also pleased to have reported an increase to the Ewoyaa Mineral
Resource to 36.8Mt at 1.24% Li(2)O(1) during the period. Despite the drilling
programme being focused on supporting our mine build activities, we identified
the Dog-Leg target, which contributed an additional circa 891,000 tonnes to
the enlarged Resource(1). We believe that Ewoyaa holds significant potential
for further resource increases. Our current focus, however, remains firmly on
bringing the Project to production, which we consider to be the greatest
driver of value for shareholders.
"With significant milestones in the advancement of the Project ahead, the
coming period is set to be hugely important for the Company.
"We look forward to providing further updates in due course."
Authorised for release by Amanda Harsas, Finance Director and Company
Secretary, Atlantic Lithium Limited.
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/5332J_1-2024-10-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5332J_1-2024-10-24.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 Definitive
Feasibility Study for Ewoyaa outlines a low capital and operating cost
profile, with globally significant, near-term production potential.
Ewoyaa, located in the pro-mining jurisdiction of Ghana, West Africa,
approximately 100km southwest of the capital of Accra, comprises eight main
deposits, including Ewoyaa, Okwesikrom, 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
(refer Figure 1).
Figure 1: Location of the Ewoyaa Lithium Project, Ghana
Interest in Tenements
At the end of the quarter ending 30 September 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 Expired
(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 22.05.24 21.05.28 4 years None
(100% Atlantic)
PR694 Agboville Khaleesi Resources SARL 08.05.24 07.05.28 4 years None
(100% Atlantic)
* A renewal application has been submitted to the relevant Government mining
department and the Group has no reason to believe the renewal will not be
granted.
September Quarter Activities
Project Development
Permitting
EPA Permit
Representing a major milestone in the permitting process, Ghana's
Environmental Protection Agency ("EPA") granted an environmental permit in
respect of the Company's Ewoyaa Lithium Project during the period.
The grant of the permit confirms the EPA's approval for the Company's proposed
activities as detailed in the Mine and Process Environment Impact Statement
("EIS") submitted by the Company, and follows the completion of two public
hearings held by the EPA in two of the Project's local affected communities,
Ewoyaa and Krofu, in which significant local support for the advancement of
the Project was demonstrated.
The Company considers the support of the EPA and its local stakeholders
imperative to the success of the Project. The grant of the EPA permit,
therefore, marks an important step towards achieving full permitting to enable
the Company to break ground at Ewoyaa.
Mine Operating Permit
Post-period end, the Minerals Commission of Ghana granted a Mine Operating
Permit in respect of the Project.
The permit served as the final regulatory approval ahead of commencing
construction and a necessary prerequisite for the Project to advance towards a
Final Investment Decision ("FID").
Having secured all of the permits required to begin construction, the Company
currently awaits the ratification of the Mining Lease in respect of the
Project.
Additional Permits
The Project was also issued, post-period end, a Land Use Certificate by the
Spatial Planning Committee of the Mfantseman Municipal Assembly. The
certificate details the approval of the land contained within the Project's
Mining Area to be rezoned for mining purposes, as required by the Company
prior to commencing construction and mining activities at Ewoyaa.
Mining Lease Submitted to Parliament
During the period, the Company received notification that the Mining Lease in
respect of the Project had been submitted to Ghana's parliament to undergo the
necessary processes in order for parliament to ratify the Mining Lease.
Following the submission, host community chiefs attended the parliamentary
committee hearing to consider the ratification of the Mining Lease. At the
engagement, the chiefs expressed their unwavering support for the Project and
urged the committee to submit its positive endorsement to parliament for
prompt ratification of the Mining Lease.
The Company continues to engage relevant local stakeholders in relation to the
ongoing parliamentary process and will provide further updates to
shareholders as appropriate.
Project Engineering
DRA Projects ("DRA") has completed the Front-End Engineering Design ("FEED")
package, undertaken to further optimise the engineering and design of the
Project originally established in the Ewoyaa Definitive Feasibility Study
("DFS"), released in June 2023, and provide relevant detail to develop the
scope of an Engineering, Procurement, and Construction Management ("EPCM")
contract. DRA is also assisting with several Non-Process Infrastructure
("NPI") packages, which will serve as the foundation for the execution of the
Project.
The Company has received engineering reports, delivery management plans, an
updated execution schedule and a cost budget estimate from DRA as part of this
package, which will form part of the scope of work for the EPCM contract,
which is anticipated to be awarded when the Board has approved the Project
FID.
Post-DFS Optimisation and Technical Refinement
Following the completion of the FEED and other NPI engineering packages, the
Company has commenced technical refinement of the Ewoyaa DFS. The optimised
DFS is expected to form the base case for the Project FID and will incorporate
the removal of the early production Modular Dense Media Separation plant,
optimised Project engineering, design and mine planning, revised capital and
operating cost estimates, and prevailing lithium market conditions.
Final Investment Decision
Project FID is subject to the completion of the permitting phases, including
parliamentary ratification of the Ewoyaa Mining Lease, completion of the DFS
optimisation and technical refinement, and the finalisation of financing and
offtake arrangements for the Project.
Due to the ongoing delays in the ratification of the Mining Lease, a date for
Project FID is yet to be determined.
Fatal Incident at the Ewoyaa Project Site
On 9 July 2024, the Company reported a tragic incident on the Project site,
which sadly resulted in the death of a member of the Company's workforce.
The Minerals Commission has completed its investigation into the incident and
the Company is collaborating with the Inspectorate Division to address the
findings. The Company commits to ensuring that relevant learnings from the
investigation are integrated into its operations and systems enhanced
accordingly so that such incidents are not repeated.
Our thoughts remain with all those who have been affected by the loss.
Exploration
Increased Ewoyaa Mineral Resource Estimate
During the period, the Company announced an increase in the total Mineral
Resource Estimate ("MRE" or "Resource") at Ewoyaa to 36.8Mt at 1.24%
Li(2)O(1), reported in accordance with the JORC Code (2012).
Following the upgrade, 81% of the enlarged Resource(1) (29.8 Mt at 1.26%
Li(2)O) now sits in the higher confidence Measured and Indicated categories.
The MRE(1) includes a total of 3.7Mt at 1.37% Li(2)O in the Measured category,
26.1Mt at 1.24% Li(2)O in the Indicated category and 7.0Mt at 1.15% Li(2)O in
the Inferred category (refer Table 1).
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 3.7 1.37 51
Total 3.7 1.37 51
Indicated Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 0.5 1.08 5
Primary 25.6 1.25 319
Total 26.1 1.24 324
Inferred Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 1.8 1.12 20
Primary 5.2 1.16 60
Total 7.0 1.15 80
Total Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 2.3 1.11 25
Primary 34.5 1.25 430
Total 36.8 1.24 455
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 June 2024. 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).
The increased MRE(1) followed a targeted drilling programme aimed at
supporting the mine build activities at the Project. This included
sterilisation drilling to support the plant and haul road design and resource
conversion drilling to convert Inferred resources to Indicated and Measured to
provide mine plan optionality.
During the drilling programme, the Dog-Leg target was identified, with
prioritised drilling subsequently undertaken, which returned multiple broad
and high-grade intersections, from which the Company has identified a
shallow-dipping, near-surface mineralised pegmatite body with true thickness
up to 35m. The Dog-Leg target contributed 890,892 tonnes, comprising 332,100
tonnes at 1.01% Li(2)O Indicated and 558,792 tonnes at 1.13% Li(2)O Inferred,
of the increased Resource(1).
Côte d'Ivoire
As part of its maiden exploration programme, the Company's geologists have
completed baseline soil and stream sediment sampling across the highly
prospective Rubino and Agboville exploration licences in Côte d'Ivoire, with
169 samples submitted for in-house analysis. Traverse mapping also continues
across the two licences.
Senya Beraku
During the period, the Company's field team completed its soil geochemical
sampling programme across the Senya Beraku prospecting licence area, with
samples submitted for in-house processing and analysis at the Company's
Mankessim facility using pXRF (portable X-Ray Fluorescence) and LiBS
(Laser-induced breakdown spectroscopy) analysers.
Follow-up mapping is planned once the complete soil assay dataset is received
and reviewed by the geological team (given samples are still being processed
and analysed).
Cape Coast
The Company's geologists are currently reviewing the soil geochemical dataset
in conjunction with airborne geophysical data over the Cape Coast licence and
the Company has engaged the local community to inform them of the Company's
work programme in order to commence further geological mapping to ground truth
certain anomalies identified.
Corporate
Project Funding
The optimisation and technical refinement of the DFS will provide the Company
with additional information relating to the funding required to meet
forecasted Project development and working capital demands prior to the
commencement of commercial production from the Project and positive cashflow
generation.
Under the Project's current funding and joint venture arrangements, Piedmont
Lithium ("Piedmont") is required to contribute the first US$70m of development
expenditure as sole funding to complete its earn-in to 50% of the Company's
Project ownership, with all development expenditure and other Project
expenditure equally shared by both the Company and Piedmont thereafter. On
completion of the earn-in, Piedmont will be entitled to 50% of the Project's
offtake at prevailing market prices.
Activities associated with the offtake partnering process and other financing
sources to secure funding for the Company's Project development obligations
are ongoing and are expected to be further progressed following parliamentary
ratification of the Ewoyaa Mining Lease.
A portion of Piedmont's expenditure obligations across certain categories of
development expenditure relating to the Project remains outstanding (US$3.1m
for the period from October 2023 to September 2024). Piedmont has contributed
50% of the development expenditure across these categories for the same
period. The Company remains 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 July to September 2024, Piedmont contributed a total of
US$2.1m (A$3.1m) towards the funding of the Project.
Cash Flow
Figure 2: Net cash flows for September 2024 quarter (AUD)
Offtake Partnering Process
During the period, the Company has continued to progress negotiations with
interested parties to secure funding for a portion of the available feedstock
from Ewoyaa, in line with the Company's offtake strategy.
While negotiations have been impacted by the delay in parliamentary
ratification of the Ewoyaa Mining Lease and the subdued lithium market
environment, which has seen spodumene concentrate prices fall to current
levels below US$760/tonne, the Company remains confident that it will secure
funding to sufficiently cover its allocation of development expenditure for
the Project which ensures maximum value for the Company's shareholders.
The Company will provide an update to shareholders in due course.
MIIF Project-level Investment
The delay in ratification of the Mining Lease by Ghana's parliament has
impacted completion of the Minerals Income Investment Fund's ("MIIF")
Project-level investment. The Company continues to work with MIIF to finalise
Stage 2 of its Strategic Investment.
Under the terms of Stage 2, and subject to the Company reaching a binding
agreement with MIIF, MIIF has agreed to invest 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.
This follows the completion of Stage 1 of MIIF's Strategic Investment in
January 2024, comprising MIIF's subscription for 19,245,574 Atlantic Lithium
shares for a value of US$5m.
Conferences Attended
The Company attended the following conferences and events during the period:
- WAIMM Geology, Exploration and Mining Conference, Accra (10
September)
- Africa Down Under conference, Perth (4-6 September)
- Noosa Mining Investor Conference (17-19 July)
Sustainability
Engagement with Persons with Disabilities
As part of the Company's local stakeholder engagement initiatives, Atlantic
Lithium met with over 80 Persons with Disabilities (PWDs) from its
Project-impacted communities in Saltpond.
The engagement provided the opportunity to openly discuss the Ewoyaa Lithium
Project with vulnerable and often overlooked members of the community,
ensuring that the individuals were heard and understood in respect of the
advancement of the Project.
Through the engagement, Atlantic Lithium stressed its commitment to promoting
inclusivity and diversity in its employment indicatives.
Central Expo 2024
Atlantic Lithium was proud to support the Central Regional Coordinating
Council's (CRCC) Central Expo 2024 held in Cape Coast.
The theme of the event, which took place from 31 August to 7 September, was
"Connecting Minds, Creating Business Opportunities in the Central Region".
Through its attendance, the Company was able to share details of its proposed
activities at the Ewoyaa Lithium Project with local stakeholders and outline
the benefits that the Project is expected to bring to the Region.
Share Capital Changes - Ordinary Shares, Options and Performance Rights
Between 1 July and the date of this report, a total of 2,600,000 options, that
had been granted under the Company's Employee Share Option Plan, lapsed
unexercised.
On 16 August 2024, 1,402,492 performance rights over new ordinary shares of
no-par value each were issued to certain employees of the Company.
A summary of movement and balances of equity securities between 1 July 2024
and the date of this report is as follows:
Ordinary Shares Unquoted Options Unquoted performance rights
On issue at start of Quarter 649,669,053 25,322,787 9,298,935
Performance Rights Granted (16 August 2024) 1,402,492
Employee Share Options lapsed (22 August 2024) (600,000)
Employee Share Options lapsed (30 September 2024) (2,000,000)
Total Securities on issue at date of this report 649,669,053 22,722,787 10,701,427
Compliance
During the quarter, the Company spent A$6.2m on its exploration, feasibility,
and development activities for its Ewoyaa Lithium Project in Ghana. In
accordance with the agreement announced on 1 July 2021, exploration and
feasibility activities are 50% funded by Piedmont, with Piedmont sole funding
the first US$70m of Project development expenditure. Funding is shared equally
thereafter.
Payments to Related Parties of the Entity and their Associates
Appendix 5B includes amounts in items 6.1 and 6.2. The amounts represent
salaries (including superannuation) and fees paid to directors.
Appendix 5B expenditure disclosure
As at end 30 September 2024, the Company had cash resources of A$7.5m and no
debt. Exploration, feasibility, and development activities cash expenditure on
the Project during the quarter was A$6.2m. Piedmont Lithium Inc. funded A$3.1m
in the quarter.
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"): 30 September 2024
Consolidated statement of cash flows Current quarter Year to date (3 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 (338) (338)
(e) administration and corporate costs (1,638) (1,638)
1.3 Dividends received (see note 3) - -
1.4 Interest received - -
1.5 Interest and other costs of finance paid (2) (2)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other Income - -
1.9 Net cash from / (used in) operating activities (1,978) (1,978)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (81) (81)
(d) exploration, feasibility, and development (6,188) (6.188)
(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 3,097 3,097
2.6 Other - Contribution from lessor for Lease Fit Out 182 182
2.7 Net cash from / (used in) investing activities (2,990) (2,990)
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 - -
3.4 Transaction costs related to issues of equity securities or convertible debt - -
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 - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 12,679 12,679
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,978) (1,978)
4.3 Net cash from / (used in) investing activities (item 2.7 above) (2,990) (2,990)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held (240) (240)
4.6 Cash and cash equivalents at end of period 7,471 7,471
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 7,464 12,673
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash 7 6
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 7,471 12,679
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 316
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 196
in item 2
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) (1,978)
8.2 (Payments for exploration & evaluation classified as investing activities) (6,188)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (8,166)
8.4 Cash and cash equivalents at quarter end (item 4.6) 7,471
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 7,471
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.9
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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: Yes
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:
· Atlantic Lithium Ltd is funded under a co-development agreement
with Piedmont Lithium Inc. Piedmont continue to contribute on a monthly basis
under the co-development agreement.
· Atlantic Lithium has agreed non-binding Heads of Terms with the
Minerals Income Investment Fund of Ghana ("MIIF") to invest in its Ghana
subsidiaries. The proposed investment will support the development of the
Project and the broader Cape Coast Lithium Portfolio in Ghana. Under the terms
of the non-binding agreement, MIIF intends to invest an initial US$27.9m to
acquire a 6% contributing interest in the Company's Ghana Portfolio and will
make ongoing contributions through monthly cash calls as the Project develops.
· Completion of ongoing competitive offtake partnering process
for a portion of the remaining 50% offtake from Ewoyaa to secure funding to
sufficiently cover the Company's allocation of the development expenditure for
the Project.
· The Company has implemented cost cutting measures during the
September 2024 quarter. Additionally, the Company will continue to closely
monitor its available cash and adjusting operating expenditure as required.
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: Yes. The Company has funding available (see 8.8.2). The Company has
its remaining LR7.1 capacity if required. The Company has a strong track
record of being able to raise funds if required.
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 October 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 quarterly report that relates to Exploration Results,
Ore Reserves, Mineral Resources and Production Targets complies with the 2012
Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code). The information in this announcement
relating to the Mineral Resource Estimate ("MRE") of 36.8Mt @ 1.24% Li₂O for
Ewoyaa is extracted from the Company's announcement entitled "New Dog-Leg
Target Delivers Increase to Ewoyaa MRE", dated 30 July 2024, which is
available at www.atlanticlithium.com.au (http://www.atlanticlithium.com.au) .
The MRE includes a total of 3.7Mt @ 1.37% Li₂O in the Measured category,
26.1Mt @ 1.24% Li₂O in the Indicated category and 7.0Mt @ 1.15% Li₂O in
the Inferred category. The Company confirms, in the case of Mineral Resources
or Ore Reserves, that all material assumptions and technical parameters
underpinning the MRE 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 in the announcement entitled, "Mining Lease
Granted for Ewoyaa Lithium Project". The Company is not aware of any new
information or data that materially affects the information included in this
quarterly report, the MRE announcement, dated 30 July 2024, the "Ewoyaa
Lithium Project Definitive Feasibility Study" announcement, dated 29 June 2023
(in which the Company reported Probable Ore Reserves and Production Targets in
respect of the Project), or the "Mining Lease Granted for Ewoyaa Lithium
Project" announcement, dated 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 Mineral Resources is extracted from the
Company's announcement entitled "New Dog-Leg Target Delivers Increase to
Ewoyaa MRE", dated 30 July 2024 (which is available at
www.atlanticlithium.com.au (http://www.atlanticlithium.com.au) ) and 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 Company confirms that the form and context in which the Competent Person's
findings are presented have not been materially modified from the original
market announcement.
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 (mailto: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, ASX, GSE and OTCQX-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
771km(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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