Atlantic Lithium Debuts On GSE With Shares Valued At GH₵649.6m

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Atlantic Lithium
Atlantic Lithium

Australian-based Atlantic Lithium Limited, the company spearheading the Ewoyaa Lithium Project in Ghana’s Central Region, has taken landmark steps to raise capital from local equity investors.

 

The company has listed its shares on the Ghana Stock Exchange (GSE), offering shares valued at GH₵649.6 million (GH₵649,669,053).

This listing complements its existing presence on the Australian Securities Exchange (ASX) and the London Stock Exchange’s AIM board.

The indicative price for the GSE listing is set at GH₵4.40, aligning with the valuation from the Primary Listing Market.

Atlantic Lithium clarified that no new shares will be issued for the GSE listing, and this move will not impact its existing listings on the ASX or AIM.

This strategic move by Atlantic Lithium not only enhances its capital base but also solidifies Ghana’s position in the global lithium market, aligning with the government’s vision of harnessing mineral resources for national development.

Atlantic Lithium’s Ewoyaa mine is poised to become Africa’s third-largest hard-rock lithium project. The next crucial steps include the ratification of a 15-year mining lease by Ghana’s parliament and a final investment decision.

Construction of the project is expected to commence in the latter half of 2024, with an annual production target of 365,000 tonnes of spodumene concentrate, making it one of the world’s largest spodumene mines.

Minister for Lands and Natural Resources, Samuel Abu Jinapor, hailed the GSE listing as a groundbreaking event that marks a new era in the exploitation of Ghana’s mineral wealth.

Speaking at the listing ceremony, Mr Jinapor emphasized that this development aligns with the government’s strategic vision of indigenizing the mining sector and enhancing value addition.

He highlighted that the listing ensures Ghanaian ownership of the Ewoyaa project, fulfilling a critical requirement of the agreement between the state and Atlantic Lithium.

“This is to fulfill one of the very important commitments made by the brokers of the transaction reached between the government of Ghana and Atlantic Lithium and their subsidiary, Bavari DV,” Jinapor stated. He pointed out that indigenizing the mining sector and adding value to resources are essential for ensuring that the benefits of mineral resources accrue to their rightful owners in Africa and Ghana.

Neil Herbert, Executive Chairman of Atlantic Lithium, underscored the company’s commitment to contributing to Ghana’s efforts to combat climate change.

“We believe that the company’s listing on the GSE is a true reflection of Ghana’s commitment to playing its part in the fight against climate change by sanctioning long-term lithium production,” Herbert said.

Chief Executive Officer of the Minerals Commission, Martin Ayisi, expressed excitement about the significant developments expected in Ghana’s mining sector over the next three years, starting with Atlantic Lithium’s listing.

He noted that this marks a new chapter in the sector and aligns with the government’s core policies.

Abena Amoah, Managing Director of the GSE, acknowledged the contributions of key organizations, including the Minerals Commission, Ministry of Lands and Natural Resources, Chamber of Mines, and the Minerals Income Investment Fund (MIIF), towards the deal. She expressed the GSE’s readiness to collaborate with Atlantic Lithium on future capital-raising endeavors.

Atlantic Lithium’s project has already attracted significant investment. In October 2023, the company was granted a mining lease for the Ewoyaa Lithium Mine and Processing Plant.

In January, Ghana’s mineral sovereign wealth fund (MIIF) became a strategic shareholder with a $5 million investment, part of a proposed total investment of $32.9 million in the company and its subsidiaries.

MIIF plans to invest a further $27.9 million to acquire a 6% interest in Atlantic Lithium’s Ghanaian portfolio, subject to a binding agreement.

Half of the Ewoyaa project’s output is designated for a refinery planned by Piedmont Lithium Ltd. in Tennessee. Piedmont, which supplies Tesla Inc. and LG Chem Ltd., is Atlantic Lithium’s second-largest shareholder, followed by MIIF.

Key players in facilitating Atlantic Lithium’s GSE listing include Black Star Brokerage Limited as the Sponsoring Broker and Arranger, JLD & MB Legal Consultancy as the Legal Advisor, SCG Chartered Accounts as the Reporting Accountants, Central Securities Depository (GH) LTD as the Registrar and Depository, and SRK Exploration Services LTD as the Geological Consultants.

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