REG - Atlantic Lithium Ltd - Rejection of Non-Binding Indicative Offers

Atlantic LithiumAnnouncement

15/11/2023 07:15

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RNS Number : 4635T  Atlantic Lithium Limited  15 November 2023

 

15 November 2023

Atlantic Lithium rejects Non-Binding Indicative Offers from Assore

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, "Atlantic Lithium"
or the "Company"), the African-focused lithium exploration and development
company targeting to deliver Ghana's first lithium mine, announces that on 7
November 2023, the Company's major shareholder Assore International Holdings
Limited ("Assore") presented a conditional and non-binding offer ("NBIO") to
acquire all of the shares in the Company that it does not already own,
pursuant to a scheme of arrangement, at an offer price of £0.33 per share
(A$0.63).

Following careful consideration, the NBIO was rejected by the Atlantic Lithium
independent board committee ("Atlantic IBC"), which was established to
consider the approach from Assore.  The NBIO follows an earlier approach from
Assore on 2 October 2023 at an identical offer price of £0.33 per share
(A$0.63; "Prior NBIO"), that was similarly rejected by the Atlantic IBC.

Shareholders of the Company do not need to take any action in respect of the
NBIO or the Prior NBIO.

Rejected Offer Not Considered to be in the Best Interests of Shareholders

The Atlantic IBC and its advisers gave careful consideration to both the NBIO
and Prior NBIO, and determined in each instance that it undervalued Atlantic
Lithium and, therefore, was not in the best interests of shareholders, having
regard to the near-term producer status of the project, the status of the
pending investment from the Minerals Income Investment Fund and the positive
near-term outlook for lithium project developers.

Conditions of the Rejected NBIOs

The NBIO and Prior NBIO were both subject to a number of conditions before
they would become binding, including the Atlantic Lithium board unanimously
recommending the offer, providing exclusive due diligence to Assore's
satisfaction, Foreign Investment Review Board approval and entry into a
definitive and mutually acceptable scheme implementation agreement.

Market Cleansing

In order for the Company to cleanse the market ahead of a proposed issue of
equity interests to the Minerals Income Investment Fund, as well as other
potential equity issues to satisfy existing employee performance plans,
Atlantic Lithium is making this announcement to provide details of the
approaches received and rejected by the Atlantic IBC. Atlantic Lithium advises
that the relationship with Assore remains supportive and constructive.

There is no certainty that a further proposal will be received (from Assore or
any other third party) and shareholders are cautioned not to place undue
reliance upon such a proposal emerging. The Company remains focused on
progressing its activities to maximise value for all shareholders.

The Company will continue to keep the market informed of any material
developments in accordance with its continuous disclosure requirements.

The Atlantic IBC appointed Canaccord Genuity Limited (Australia and UK) as its
financial adviser and HopgoodGanim Lawyers as its legal adviser.

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

"Assore, a major African mining company, has been a leading investor and key
contributor to the Company's success since its listing in London in 2015. We
look forward to maintaining our strong relationship with Assore as we progress
Ewoyaa towards production."

 

The exchange rate used in this announcement is as follows:

GBP-AUD: 1.93

 

Authorised for release by the Board of Directors of 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.

 

For any further information, please contact:
Atlantic Lithium Limited

Neil Herbert (Executive Chairman)

Amanda Harsas (Finance Director and Company Secretary)

                   www.atlanticlithium.com.au
                   IR@atlanticlithium.com.au
                   Tel: +61 2 8072 0640
 SP Angel Corporate Finance LLP      Yellow Jersey PR Limited      Canaccord Genuity Limited

 Nominated Adviser                   Charles Goodwin               Financial Adviser:

 Jeff Keating                        Bessie Elliot                 Raj Khatri (UK) /

                                   atlantic@yellowjerseypr.com

 Charlie Bouverat
                             Duncan St John, Christian Calabrese (Australia)

                                   Tel: +44 (0)20 3004 9512

 Tel: +44 (0)20 3470 0470

                                                                   Corporate Broking:

                                                                   James Asensio

                                                                   Tel: +44 (0) 20 7523 4500

 

Notes to Editors:

 

About Atlantic Lithium

www.atlanticlithium.com.au (http://www.atlanticlithium.com.au/)

Atlantic Lithium is an AIM and ASX-listed lithium company advancing a
portfolio of lithium projects in Ghana and Côte d'Ivoire through to
production.

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant
lithium spodumene pegmatite discovery on track to become Ghana's first
lithium-producing mine.

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

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

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

 

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