Atlantic Lithium awaits parliamentary ratification of its revised Ewoyaa mining lease as Ghana prepares to establish its first lithium mine amid recovering global prices for the critical mineral.
The company submitted an updated mining lease to Parliament December 22 following consultations between the Minister of Lands and Natural Resources and industry stakeholders. The revised agreement incorporates fiscal terms aligning the project’s royalty rate and Growth and Sustainability Levy with current legislation.
Parliament reconvened Tuesday, February 3, and the Parliamentary Select Committee is expected to review the lease and provide recommendations. Ratification represents the final permitting step for the project, which secured all necessary regulatory approvals including Environmental Protection Agency (EPA) and Mine Operating permits.
Keith Muller, chief executive of Atlantic Lithium, expressed confidence that ratification will proceed according to established parliamentary processes. The company noted that approval would enable advancement toward project financing and construction.
The revised lease introduces a sliding scale royalty structure proposed under the Minerals and Mining Royalty Regulations 2025 legislative instrument. Royalty rates range from 5 percent for spodumene prices up to 1,500 United States dollars per tonne, increasing to 7 percent between 1,501 and 2,500 dollars, 10 percent between 2,501 and 3,000 dollars, and reaching 12 percent above 3,000 dollars per tonne.
Spodumene concentrate prices reached approximately 2,200 dollars per tonne in late January, marking substantial recovery from mid October 2025 levels near 800 dollars per tonne. The Shanghai Metals Market reported benchmark prices at 2,205 dollars per tonne January 27, representing increases exceeding 175 percent over three months.
Market analysts attribute the price recovery to tightening supply conditions, inventory drawdowns and improving demand expectations. Chinese authorities canceled 27 mining permits in the lithium production hub of Jiangxi Province while temporarily suspending operations at Contemporary Amperex Technology Co Limited’s (CATL) Jianxiawo lithium mine.
Atlantic Lithium recorded cash reserves of 5.4 million Australian dollars at December 31, down from prior positions as the company conserved resources during the parliamentary process. The firm completed a second placement under its share agreement with Long State Investments raising two million British pounds through issuing 19.4 million shares at 10.3 pence per share.
The company maintains access to additional funding capacity totaling 50.4 million Australian dollars through equity facilities with Long State. Management estimates current funding provides approximately 17.6 quarters of operational capacity based on recent expenditure patterns.
Exploration spending reached 2.2 million Australian dollars in Ghana during the quarter alongside 200,000 Australian dollars in Côte d’Ivoire. Partner Elevra Lithium contributed 607,000 Australian dollars toward project development costs under the existing farm in arrangement providing Elevra with 22.5 percent ownership interest.
The Ewoyaa project comprises eight deposits located approximately 100 kilometers southwest of Accra in the Central Region. The site sits within one kilometer of the Takoradi to Accra N1 highway and 110 kilometers from Takoradi deep sea port with grid power access.
A Definitive Feasibility Study (DFS) published July 2023 outlined production potential of approximately 3.6 million tonnes of spodumene concentrate over a 12 year mine life. The study indicated low capital and operating cost profiles supporting near term production viability.
Mineral resources total 36.8 million tonnes at 1.24 percent lithium oxide (Li₂O) including 3.7 million tonnes at 1.37 percent Li₂O in the Measured category, 26.1 million tonnes at 1.24 percent Li₂O in Indicated category and seven million tonnes at 1.15 percent Li₂O in Inferred category according to JORC standards.
Ore reserves classified as Probable reach 25.6 million tonnes at 1.22 percent Li₂O. The mining lease originally granted October 2023 provides exclusive rights for an initial 15 year period with renewal provisions.
Ghana secured 13 percent free carried interest in the project alongside a six percent stake through the Minerals Income Investment Fund (MIIF), which committed approximately 51.4 million dollars supporting development. The government holds total equity participation of 19 percent.
Parliament temporarily withdrew the original mining lease December 11 for additional consultations regarding Ghana’s mining code and royalty frameworks. Former Lands and Natural Resources Minister Samuel Abu Jinapor criticized the revised terms as less favorable than the 2023 agreement negotiated during his tenure.
Ranking Member on Parliament’s Lands and Natural Resources Committee Kwaku Ampratwum Sarpong described the revised agreement as contrary to national interests, noting Barari DV Ghana Limited appeared prepared to proceed under the original 10 percent royalty arrangement.
Atlantic Lithium continues exploration activities across licenses in Côte d’Ivoire where soil sampling programs identified pronounced lithium anomalies. Phase 3 soil geochemical results at Rubino extended anomalous zones to approximately six kilometers by 2.5 kilometers, while Phase 2 results at Agboville delineated linear anomalies exceeding five kilometers.
The company discovered additional spodumene pegmatite occurrences during mapping at Rubino. Geological teams commenced Phase 4 soil sampling at Agboville collecting 984 samples from 1,054 planned sites using wider grid spacing to evaluate larger areas efficiently.
The Agboville and Rubino licenses cover 396.89 square kilometers and 374.18 square kilometers respectively, located approximately 80 kilometers north of Abidjan. Both licenses provide exclusive lithium exploration rights through May 2028.
Atlantic Lithium commissioned a reverse osmosis water treatment plant and storage system in Ewoyaa during the quarter addressing community water shortage concerns. The facility delivers 2,000 liters per hour serving over 500 residents with clean potable water, reducing reliance on unsafe sources.
The company organized breast cancer sensitization and free medical screening for 468 women across host communities in October marking Breast Cancer Awareness Month. The initiative operated in partnership with Mfantseman Municipal Health Directorate and Planned Parenthood Association of Ghana.
Atlantic Lithium withdrew ordinary shares from trading on the OTCID Basic Market as part of cost rationalization measures. Trading volumes no longer justified maintaining the listing, though shares remain quoted on the OTC Pink Limited Market without company sponsorship.
The company continues trading on the Alternative Investment Market (AIM) in London, Australian Securities Exchange (ASX) and Ghana Stock Exchange (GSE). Share prices jumped approximately 30 percent to 10.26 pence following announcement of the revised mining lease submission December 23.
Administrative and operating expenses totaled 930,000 Australian dollars for the quarter. Directors received 184,000 Australian dollars in salaries and fees with an additional 100,000 Australian dollars in payments to related parties for exploration activities.
Atlantic Lithium maintains disputes with Elevra regarding expenditure definitions under the project agreement. The company remains engaged in discussions with established resolution processes including good faith negotiations and arbitration provisions.
The project requires approximately 185 million dollars in financing to advance toward construction. Management indicated improved spodumene prices support attracting enhanced funding options during this crucial development period.
International Energy Agency forecasts suggest lithium supply deficits approaching 40 percent by 2035 driven by rapid demand growth linked to energy transition despite current oversupply conditions. Structural constraints on new supply could support higher long term prices.
Ghana’s entry into lithium production positions the nation as emerging player in global battery materials markets supporting electric vehicle manufacturing and renewable energy storage systems. The country seeks to diversify its mineral portfolio beyond traditional gold production.
Lets hope parliament ratifies this lithium mine as soon as possible. Ghana will not earn one Cedi whilst the lithium is in the ground. We are also in danger of missing the lithium boom.