REG - Atlantic Lithium Ltd - Response to Online Report & Restoration of Trading

Atlantic LithiumAnnouncement

09/03/2023 08:00

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RNS Number : 4308S  Atlantic Lithium Limited  09 March 2023

9 March 2023

 

Response to Online Report & Restoration of Trading

 

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, "Atlantic Lithium"
or the "Company"), the funded African-focussed lithium exploration and
development company targeting to deliver Ghana's first lithium mine, issues
the following statement in response to the false and misleading report (the
"Report") regarding its partner Piedmont Lithium Inc. released by Blue Orca
Capital on 08 March 2023.

 

The Company holds valid Prospecting Licences with operating permits for all of
its current activities, in accordance with the Ghanaian government and the
Minerals Commission's requirements, and outrightly refutes the allegations of
impropriety made by the Report.

 

Following this notification, trading in the Company's shares on AIM will be
restored with effect from 8:15 a.m. today.

 

Joy Transporters

 

As first announced on 17 January 2018, following appropriate due diligence,
the Company entered into conditional and binding terms with Joy Transporters
Ltd ("Joy Transporters"), which held exclusive rights to the Saltpond and Cape
Coast prospecting licences. The Saltpond and Cape Coast prospecting licences
currently contain no defined resources and form part of the Company's wider
exploration portfolio in Ghana.

 

On 12 March 2020, the Company announced that it had entered into an agreement
to purchase 100% of the ownership of Joy Transporters, with the consideration
being the issue of 2,360,035 shares in the Company, which were valued at
approximately GBP280k (US$330k) at the time. As per the original terms, the
selling party retains its Net Smelter Return of 2.5% (of which 50% can be
acquired by the Company for US$3m). The Joy Transporters licences do not form
part of the Company's defined resources and are excluded from the Company's
Mining Licence application for the Ewoyaa Lithium Project. At this time no
revenue is anticipated from the Joy Transporters licences and subsequently no
royalty will be payable.

 

Completion of the acquisition was subject to regulatory and ministerial
approvals which were duly received. The completion was announced by the
Company on 4 February 2021 and the licences are now 100% owned by the Company.

 

Mining Licence Application

 

The Company's Ewoyaa Lithium Project sits within the Mankessim licence (owned
by Barari DV Ghana Ltd, which is 90% owned by the Company) and Mankessim South
licence (owned by Green Metals Resources Ltd, which is 100% owned by the
Company). These subsidiary companies lodged applications for a Mining Licence
for the Ewoyaa Lithium Project with Ghana's Minerals Commission, as announced
by the Company on 13 October 2022. The Mining Licence application excludes the
Joy Transporters licences which do not form part of the Company's defined
resources for the Ewoyaa Lithium Project.

 

The Company believes that the Minerals Commission will grant the Mining
Licence for the Ewoyaa Lithium Project and Ghana's Parliament will ratify the
Company's Mining Licence in due course.

 

Ghana is an established mining jurisdiction with a robust mining framework.
The Company has a zero-tolerance policy on bribery and corruption and, in all
of its activities, operates in accordance with the most stringent levels of
corporate governance internationally.

 

All allegations in the Report have been taken seriously by the Company and are
ungrounded.

 

The Company will seek legal advice to address the claims made by the Report.

 

The Report is clearly intended to benefit Blue Orca Capital, which, in the
Report itself, has disclosed that it is short selling and stands to profit in
the event that the stock price of Piedmont Lithium Inc. declines. Atlantic
Lithium cautions investors not to make decisions based on the Report, which it
considers factually untrue.

 

 

For any further information, please contact:

 

 Atlantic Lithium Limited                                           Tel: +61 2 8072 0640

 Neil Herbert (Executive Chairman)

 Amanda Harsas (Finance Director and Company Secretary)

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

 IR@atlanticlithium.com.au

 SP Angel Corporate Finance LLP                                     Tel: +44 (0)20 3470 0470

 Nominated Adviser

 Jeff Keating

 Charlie Bouverat

 Canaccord Genuity Limited                                          Tel: +44 (0) 20 7523 4500

 Joint Company Broker

 Raj Khatri

 James Asensio

 Harry Rees

 Liberum Capital Limited                                            Tel: +44 (0) 20 3100 2000

 Joint Company Broker

 Scott Mathieson

 Edward Thomas

 Kane Collings

 Yellow Jersey PR Limited                                           Tel: +44 (0)20 3004 9512

 Charles Goodwin

 Bessie Elliot
 atlantic@yellowjerseypr.com (mailto:atlantic@yellowjerseypr.com)

Notes to Editors:

 

About Atlantic Lithium

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

 

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

 

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant
lithium spodumene pegmatite discovery on track to become Ghana's first
lithium-producing mine. The Company signed a funding agreement with Piedmont
Lithium Inc. for US$103m towards the development of the Ewoyaa Project. Based
on the Pre-Feasibility Study, the Ewoyaa Project has indicated Life of Mine
revenues exceeding US$4.84bn, producing a spodumene concentrate via simple
gravity only process flowsheet.

 

Atlantic Lithium holds 560km(2) & 774km(2) of tenure across Ghana and
Côte d'Ivoire respectively, comprising significantly under-explored, highly
prospective licences.

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