REG - Atlantic Lithium Ltd - 2024 Annual Financial Report

Atlantic LithiumAnnouncement

18/09/2024 07:00

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RNS Number : 6623E  Atlantic Lithium Limited  18 September 2024

18 September 2024

2024 Financial Report

 

Atlantic Lithium looks ahead to achieving full permitting

and the construction of its low-cost, industry-leading Ewoyaa Lithium Project

The Board of Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX:
ALLIF, "Atlantic Lithium" or the "Company"), the African-focused lithium
exploration and development company targeting to deliver Ghana's first lithium
mine, is pleased to announce its audited results for the year ended 30 June
2024.

A full copy of the 2024 Annual Report is available on the Company's website
(www.atlanticlithium.com.au (https://www.atlanticlithium.com.au/) ).

The PDF can also be viewed via the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6623E_1-2024-9-18.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6623E_1-2024-9-18.pdf) .

Highlights

Project Development:

-       Grant of the Mining Lease in respect of the Company's flagship
Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in Ghana; the country's
first for lithium.

o  Post-period end, the Mining Lease in respect of the Project was submitted
to parliament to undergo the necessary ratification process.

-       Completion of key criteria as agreed under the terms of the grant
of the Mining Lease:

o  Admission of the Company's entire share capital by introduction and
commencement of trading on the Main Market of the Ghana Stock Exchange;

o  Completion and submission to the Minerals Commission of the Downstream
Conversion Study and Feldspar Study, respectively.

-       Significant progress towards the permitting milestones required for
the advancement of the Project, including:

o  Completion of two Environmental Protection Agency ("EPA") public hearings
in respect of the Project;

o  Post-period end, the Project was granted the EPA environmental permit
("EPA permit"), representing the EPA's approval for the Company's proposed
activities at Ewoyaa, as detailed in the Mine and Process Environment Impact
Statement ("EIS").

-       Completion of the Flotation Study, which confirms the viability of
the inclusion of a downstream flotation circuit at the Project; to be
investigated further as a value-addition opportunity at Ewoyaa.

-       Commitment from strategic funding partner Piedmont Lithium Inc.
("Piedmont") to support the development of the Project towards production.

o  In line with its earn-in agreement with the Company, Piedmont exercised
its option to acquire an initial 22.5% interest in the Company's ownership of
its lithium projects in Ghana.

-       EPA authorisation to divert the transmission lines currently
traversing planned mining areas at the Project.

 

Corporate:

-       Non-binding Heads of Terms agreed with Ghana's sovereign wealth
fund, the Minerals Income Investment Fund ("MIIF"), to invest a total of
US$32.9m in the Company and its Ghanaian subsidiaries ("Strategic Investment")
to expedite the development of the Project.

o  Completion of MIIF's US$5m Subscription for Atlantic Lithium shares,
representing the first stage of its Strategic Investment.

-       Appointment of MIIF Chief Executive Officer Edward Nana Yaw
Koranteng as Non-Executive Director and Jonathan Henry as Independent
Non-Executive Director, respectively, to the Company's Board of Directors.

-       Successful A$8m Equity Placing, supported by existing and new
institutional investors.

-       Commencement and progression of the ongoing competitive offtake
partnering process for up to 500,000 tonnes of spodumene concentrate to be
produced at Ewoyaa.

-       Rejection of two conditional and non-binding offers from the
Company's largest shareholder, Assore International Holdings Limited
("Assore"), to acquire all of the shares in the Company that Assore does not
already own.

-       Purchase of 24.3m Atlantic Lithium shares at a premium by Assore
from Piedmont.

-       Key hires to add mine build and operating experience to the
Company's leadership, including the appointment of Michael Bourguignon as Head
of Capital Projects and Ahmed-Salim Adam as General Manager, Operations.

 

Exploration:

-       Maiden JORC (2012) compliant Feldspar Mineral Resource Estimate of
15.7Mt @ 40.2% feldspar at Ewoyaa; Feldspar MRE is confined to the first five
years of production at the Project, as detailed in the Ewoyaa Definitive
Feasibility Study.

-       Grant of exploration permits in respect of the Rubino and Agboville
exploration licences in Côte d'Ivoire to the Company's wholly-owned
subsidiary Khaleesi Resources SARL, marking the Company's expansion of its
lithium exploration activities beyond Ghana for the first time.

-       Grant of the Senya Beraku and Bewadze prospecting licences in the
east of the Company's Cape Coast Lithium Portfolio in Ghana.

o  Commencement of field work at Senya Beraku, including the completion of a
100m x 100m soil geochemical sampling programme and first pass surface
geological mapping.

-       High-grade and broad intersections reported in results received for
a total of 27,791m of drilling completed at the Project, including at the
Dog-Leg target, which contributed 890,892 tonnes to the increased Mineral
Resource Estimate reported post-period.

-       Post-period end, JORC (2012) compliant Mineral Resource Estimate
for the Ewoyaa Lithium Project increased to 36.8Mt at 1.24% Li(2)O(1).

-       Commencement, post-period end, of preliminary mapping traverses and
baseline soil and stream sediment geochemical sampling over the Rubino and
Agboville exploration licences in Côte d'Ivoire.

 

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

"I am pleased to report Atlantic Lithium's results for the year ended 30 June
2024, during which significant progress has been made towards the Company's
ongoing transition from explorer to mine developer and operator.

"The grant of the Mining Lease serves as an important de-risking milestone for
the advancement of the Project and represents a major landmark, both for the
Company and for Ghana, in the pursuit of achieving spodumene concentrate
production at Ewoyaa.

"Having delivered upon the key terms as agreed under the grant of the Mining
Lease during the period, we now eagerly anticipate the ratification of the
Mining Lease by Ghana's parliament. Concurrently, considerable work has gone
into the progression of the permitting phases as required for the Project, and
we now find ourselves within touching distance of achieving full permitting
and shovel readiness at Ewoyaa.

"In the current lithium market, the Project's characteristics, namely Ewoyaa's
favourable geology, which enables simple Dense Media Separation processing,
and the exceptional infrastructure available to us in the Central Region,
become even more important. These characteristics contribute to Ewoyaa's low
operating and development cost profile, which we believe will ensure that the
Project is a success, even in lower pricing environments.

"At this important point in the development of the Project, we would like to
thank our Project partners and the Company's shareholders for their unwavering
support and every member of the Atlantic Lithium for their continued hard
work.

"We look forward to a hugely exciting year ahead, marked by a number of
milestones which will see us move closer to delivering Ewoyaa as a globally
significant spodumene mine."

 

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

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.

 

End Note

(1) Ore Reserves, Mineral Resources and Production Targets

The information in this announcement and the accompanying Annual Report that
relates to Ore Reserves, Mineral Resources and Production Targets complies
with the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code). The information
relating to the Mineral Resource Estimate ("MRE") of 36.8Mt @ 1.24% Li₂O for
Ewoyaa is extracted from the Company's MRE announcement dated 30 July 2024,
which is available at www.atlanticlithium.com.au
(http://www.atlanticlithium.com.au) . The MRE includes a total of 3.7Mt @
1.37% Li₂O in the Measured category, 26.1Mt @ 1.24% Li₂O in the Indicated
category and 7.0Mt @ 1.15% Li₂O in the Inferred category. The Company
confirms that all material assumptions and technical parameters underpinning
the MRE continue to apply. The information relating to Ore Reserves of 25.6Mt
@ 1.22% Li(2)O and Production Targets for Ewoyaa is extracted from the
Company's Definitive Feasibility Study ("DFS") announcement dated 29 June
2023, which is available at www.atlanticlithium.com.au
(http://www.atlanticlithium.com.au) . Material assumptions for the Project
have been revised on grant of the Mining Lease for the Project, announced by
the Company on 20 October 2023. The Company is not aware of any new
information or data that materially affects the information included in this
announcement and the accompanying Annual Report, the MRE announcement (dated
30 July 2024), the DFS announcement (dated 29 June 2023), or the Grant of the
Ewoyaa Mining Lease announcement (dated 20 October 2023).

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