REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report

Canaccord GenuityAnnouncement

27/10/2022 08:15

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RNS Number : 3079E  Atlantic Lithium Limited  27 October 2022

 
27 October 2022

Corporate Update

 

Quarterly Activities and Cash Flow Report

for the quarter ended 30 September 2022

 

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTC: ALLIF, "Atlantic Lithium"
or the "Company"), the funded African-focussed lithium exploration and
development company targeting to deliver Ghana's first lithium mine, is
pleased to present its Quarterly Report for the quarter ended 30 September
2022.

 

The Quarterly Report for the quarter ended 30 September 2022 can be viewed and
is available via this link:

http://www.rns-pdf.londonstockexchange.com/rns/3079E_1-2022-10-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3079E_1-2022-10-27.pdf)

 

Quarterly Highlights:

 

Ewoyaa Lithium Project, Ghana

 

·    Delivered robust Pre-Feasibility Study ("PFS"), with highlights
including:

o  Post-tax NPV(8) of US$1.33bn with free cash flow of US$2bn from Life of
Mine ("LOM") revenues of US$4.84bn.

o  Internal rate of return of 224% and payback less than five months, with an
average LOM EBITDA of $248 million per annum.

o  Maiden Ore Reserve of 18.9Mt at 1.24% Li(2)O declared, demonstrating sound
resource to reserve conversion.

o  12.5-year mine life, 2Mtpa conventional dense media separation ("DMS")
processing facility with average 255,000tpa 6% lithium spodumene concentrate
("SC6") production.

 

·    Received assay results for approximately 6,900m of Reverse
Circulation ("RC") drilling completed at the Ewoyaa Main and Grasscutter North
targets as part of the planned 37,000m resource evaluation and exploration RC
and diamond core drilling ("DD") programme (see releases dated 19 July and 2nd
August 2022).

o The programme, which was completed post-period end, was extended by 10,000m
for geotechnical, metallurgical, hydrogeological and exploration drilling to a
total of 47,000m.

 

Corporate Highlights

 

·    Commenced trading on the Australian Securities Exchange ("ASX") under
the ticker 'A11'.

·    Cash on hand at end of quarter of A$23.4 million.

 

Commenting on the Company's latest progress, Neil Herbert, Executive Chairman
of Atlantic Lithium, said:

 

"We are pleased to be releasing the Company's quarterly report for the period
ended 30 September 2022 - the first announcement of this kind following
Atlantic Lithium's Admission on the ASX.

 

"The publishing of the Pre-Feasibility Study in September marked a significant
milestone in the Ewoyaa Lithium Project's journey towards production. We have
continued to build on this progress post-period end through the submission of
an application for a mining licence to the Minerals Commission of Ghana and
the completion of the extended drilling programme at the Project. Work is now
ongoing to deliver a further Resource upgrade at Ewoyaa in the final quarter
of the year or early in 2023.

 

"We also believe that the Company's listing on the ASX during the period will
enable us to extend the Company's shareholder base, enable wider trading and
offer greater liquidity for Atlantic Lithium shares. With a number of lithium
companies on the ASX attracting significant investor interest recently, we
hope that the listing will be a step towards achieving a more attractive
valuation with respect to our industry-leading Ewoyaa Project. As an
Australian-headquartered company, the listing also enables closer
communication with our existing investor base in Australia.

 

"We look forward to providing further updates 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.

 

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

 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

 Henry Wilkinson

 Dominic Barretto

 James Lingfield

 

Notes to Editors:

 

About Atlantic Lithium

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

 

Atlantic Lithium (formerly "IronRidge Resources") is an AIM and ASX-listed
lithium exploration and development company advancing a portfolio of lithium
projects and licenses 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 licenses.

 

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