REG - Atlantic Lithium Ltd - Statement re Proposed Merger of PLL and SYA

Atlantic LithiumAnnouncement

26/11/2024 07:00

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RNS Number : 6600N  Atlantic Lithium Limited  26 November 2024

 

26 November 2024

Statement re Proposed Merger of

Piedmont Lithium and Sayona Mining

Atlantic Lithium welcomes ongoing commitment to the development of the Company's flagship

Ewoyaa Lithium Project from the proposed, enlarged MergeCo

Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF,
"Atlantic Lithium" or the "Company"), the Africa-focused lithium exploration
and development company targeting the delivery of Ghana's first lithium mine,
notes the announcements made by Piedmont Lithium Inc. (Nasdaq: PLL, ASX: PLL,
"Piedmont"), the Company's strategic funding partner for its flagship Ewoyaa
Lithium Project ("Ewoyaa" or the "Project"), and North American Lithium
producer Sayona Mining (ASX: SYA; OTCQB: SYAXF, "Sayona") on 19 November 2024
regarding the signing of a definitive agreement to combine the two companies
("Proposed Merger") to create a leading lithium business, with Sayona being
the ultimate parent entity ("MergeCo"), and issues the following statement.

The Company has held positive discussions with Sayona Chief Executive Officer
("CEO") and Managing Director ("MD") Lucas Dow, the intended CEO and MD of
MergeCo, in which he stated MergeCo's commitment to support the continued
development of the Project towards production.

The Company confirms that, as a result of the Proposed Merger, MergeCo will
assume Piedmont's prior obligations, as detailed under the terms of Atlantic
Lithium's co-funding agreement with Piedmont in respect of the Project.
Accordingly, MergeCo will be required to sole fund US$70.0m towards the
development expenditure for the Project, with any cost overruns shared equally
between the Company and MergeCo, to earn up to 50% of the Company's interest
in the Project and for the right to an offtake agreement for 50% of the
Project's spodumene concentrate production at market rates.

The Company believes that the Proposed Merger will not only significantly
de-risk the funding of the Project towards production, but also extend the
Project's exposure globally, notably in North America and Australia, including
to potential offtakers.

In addition, the management team of MergeCo has extended an offer to key
members of the Company's staff to spend time at Sayona's North American
Lithium project in Canada, where production is currently being ramped up
towards steady state, enabling Atlantic Lithium staff to leverage Sayona's
considerable expertise in large-scale mine development, operation and
commercial lithium production, which the Company believes can be applied at
the Project.

Atlantic Lithium warmly welcomes the continued support from MergeCo, which it
believes will contribute significantly to the success of the Project.

The Company notes that the Proposed Merger is subject to, among other
conditions precedent, approval from Sayona and Piedmont shareholders,
respectively, and, therefore, no assumption can be made that the Proposed
Merger will eventuate.

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

"Following our discussions with Sayona CEO and MD Lucas Dow and his team, we
wholeheartedly welcome the commitment from MergeCo towards the continued
funding and development of the Company's Ewoyaa Lithium Project towards
production.

"With lithium prices expected to remain subdued over the short-medium term, we
believe that Ewoyaa's low-cost profile makes it a highly attractive asset in
MergeCo's enlarged portfolio. The Proposed Merger not only emphasises the
underlying belief in lithium's role in the global energy transition but also
significantly de-risks the funding of the Project, at an important juncture in
its lifecycle.

"We look forward to working closely with the MergeCo team to drive Ewoyaa
forward to become Ghana's first lithium mine."

 

Authorised for release by Amanda Harsas, Finance Director and Company
Secretary, Atlantic Lithium Limited.

 

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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