REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
30/07/2024 07:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240730:nRSd3568Ya&default-theme=true
RNS Number : 3568Y Atlantic Lithium Limited 30 July 2024
30 July 2024
Quarterly Activities and Cash Flow Report
for the quarter ended 30 June 2024
Atlantic Lithium nears shovel-readiness following the completion
of several major permitting milestones at the Ewoyaa Lithium Project
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 Quarterly Activities and Cash Flow Report for the
period ended 30 June 2024.
Highlights from the Reporting Period:
Project Development:
- Completion of several key milestones in the permitting process
for the advancement of the Company's flagship Ewoyaa Lithium Project ("Ewoyaa"
or "the Project") in Ghana.
o Successful completion of the second and final Environmental Protection
Agency ("EPA") public hearing in respect of the Project.
o Submission of draft Environment Impact Statement ("EIS") to the EPA.
o Admission of the Company's entire share capital by introduction and
commencement of trading on the Main Market of the Ghana Stock Exchange, as
agreed under the terms of the grant of the Ewoyaa Mining Lease.
- Post period-end, the Mining Lease in respect of the Project was
submitted to parliament to undergo the necessary ratification process.
Exploration:
- Commencement of field work at the newly-granted Senya Beraku
prospecting licence in the east of the Company's Cape Coast Lithium Portfolio
in Ghana.
- High-grade assay results reported from the Dog-Leg target, with
highlights including hole GRC0177: 27m at 1.85% Li(2)O from 126m and hole
GRC1059: 15m at 1.08% Li(2)O from 126m.
- Completion of sterilisation reverse circulation ("RC") drilling
at the proposed plant site, with no mineralisation reported, providing
increased confidence in the proposed site location.
- Post-period end, Mineral Resource Estimate increase reported for
the Ewoyaa Lithium Project to 36.8Mt at 1.24% Li(2)O, reported in accordance
with the JORC Code (2012).
Corporate:
- Appointment of Minerals Income Investment Fund ("MIIF") Chief
Executive Officer Edward Nana Yaw Koranteng to the Company's Board of
Directors as Non-Executive Director, in line with the completion of MIIF's
US$5m subscription in the Company.
- The Company has progressed negotiations on key agreements as
part of the ongoing competitive offtake partnering process for spodumene
concentrate produced at Ewoyaa to secure funding expected to sufficiently
cover the Company's allocation of the development expenditure for the Project.
- Cash on hand at end of quarter was A$12.7m.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"Considerable progress has been made towards advancing the Company's flagship
Ewoyaa Lithium Project towards shovel-readiness. The Project is set to be one
of the leading hard rock lithium projects, expected to generate significant
benefits to the local communities in which we operate in the Central Region,
and to Ghana more broadly.
"Following the grant of the Mining Lease in October 2023, we received
notification this month that the Mining Lease had been submitted to parliament
to undergo the necessary approval process to enable the advancement of the
Project towards construction and operation.
"It is expected that the Mining Lease will be ratified in the current
parliamentary sitting or in the next parliamentary session, expected to
commence in October. We are prepared for all eventualities and will adapt
plans as events unfold.
"We continue to make strong progress through permitting hurdles, with the
recent submission of the draft Environment Impact Statement and subsequent
completion of the second and final EPA public hearing in respect of the
Project; both representing major events on the road to production.
"In June, we were delighted to list the Company's shares on the Ghana Stock
Exchange, providing Ghanaians the opportunity to share ownership in the
development of the country's first lithium mine. We also welcomed the
appointment of Edward Koranteng, the CEO of MIIF, the sovereign wealth fund of
Ghana, to the Company's Board as Non-Executive Director. This follows the
completion of MIIF's US$5m subscription in the Company early in the year.
"We are busy working to conclude several major landmark events, including
the completion of the ongoing offtake partnering process, MIIF's Project-level
investment and the grant of the remaining permits as required for the
advancement of the Project.
"We appreciate shareholders patience and support and look forward to providing
further updates on our progress."
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.
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/3568Y_1-2024-7-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3568Y_1-2024-7-30.pdf)
Ewoyaa Lithium Project, Ghana, West Africa
During the period, the Company continued to advance its flagship project, the
Ewoyaa Lithium Project, through the permitting phase towards production. The
Project is on track to become Ghana's first operating lithium mine and one of
the largest hard rock spodumene concentrate mines globally.(2) The Definitive
Feasibility Study for Ewoyaa outlines a low capital and operating cost
profile, with globally significant, near-term production potential.
Ewoyaa, located in the pro-mining jurisdiction of Ghana, West Africa,
approximately 100km southwest of the capital of Accra, comprises eight main
deposits, including Ewoyaa, Okwesikrom, Anokyi, Grasscutter, Abonko,
Kaampakrom, Sill and Bypass. The Project is well located, being adjacent to
operational infrastructure including within 1km of the Takoradi - Accra N1
highway, 110km from the Takoradi deep-sea port and adjacent to grid power
(refer Figure 1).
Figure 1: Location of the Ewoyaa Lithium Project
Interest in Tenements
At the end of the quarter ending 30 June 2024, the Company had an interest in
the following tenements:
Tenement Number Tenement Principal Grant Date/ Expiry Date Term Change during Quarter
Name
Holder
Application Date
Ghana
PL3/67 Apam East Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
PL3/92 Apam West Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
RL 3/55 Mankessim Barari DV Ghana Limited 27.07.21 26.07.24 3 years None
(90% Atlantic)
PL3/102 Saltpond Joy Transporters Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/109 Mankessim South Green Metals Resources Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/106 Cape Coast Joy Transporters Limited 15.11.21 14.11.24 3 years None
(100% Atlantic)
RML-N-3/181 Senya Beraku Green Metals Resources Limited (100% Atlantic) 09.11.23 08.11.26 3 years None
PL-I-3/15 Bewadze Green Metals Resources Limited 09.11.23 08.11.26 3 years None
(100% Atlantic)
ML-3/239 Mankessim Mining Lease Barari DV Ghana Limited (90% Atlantic) 20.10.23 19.10.38 15 years None
Ekrubaadze PL Green Metals Resources Limited 03.10.23 Application None
(100% Atlantic)
Asebu (Winneba North) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadze (Winneba South) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadzi Obotan Minerals Company Limited 15.03.18 Application None
(JV MODA Minerals Limited)
Onyadze Green Metals Resources Limited 23.08.21 Application None
(100% Atlantic)
Ivory Coast
PR695 Rubino Khaleesi Resources SARL 08.05.24 07.05.28 4 years Granted
(100% Atlantic)
PR694 Agboville Khaleesi Resources SARL 22.05.24 21.05.28 4 years Granted
(100% Atlantic)
June Quarter Activities
Project Development
Permitting
EPA Public Hearing
In June 2024, in Krofu, in Ghana's Central Region, a second and final public
hearing was successfully held by the Ghana Environmental Protection Agency
("EPA") in respect of the Ewoyaa Lithium Project, as required under the
permitting process for the Project.
The event was attended, as it was for the first hearing in February 2024, by
over 1,000 key local stakeholders, comprising members of local and regional
governments, paramount and divisional chiefs, representatives of the Project's
catchment area communities, representatives of the Minerals Commission, and
the EPA.
During the event, EPA Deputy Executive Director, Mr Ransford Sekyi, reassured
attendees that the EPA would hold the Company to its commitments to mitigate
the impacts of its proposed mining activities through its adherence to modern
mining practices. He also stated that all concerns received from local
community members would be addressed through the permitting process before the
issue of the EPA permit.
For his part, General Manager, Operations Ahmed-Salim Adam reiterated the
Company's firm commitment to generating value for the local community through
the production of lithium at Ewoyaa, notably through the creation of jobs and
the establishment of training programmes for those living within the Project's
catchment area. The Company's Community Relations and Social Performance
Manager, Dr. Millicent Aning-Agyei, detailed the Company's Local Employment
Framework, which has been established to ensure that roles are appropriately
advertised within the local communities, calling upon those attending the
hearing to join the journey to deliver first production of lithium in Ghana.
The overwhelming turnout and active participation of respective community
chiefs and elders again demonstrated the immense support from the
Project-affected communities.
Following the completion of the second hearing, the Company awaits feedback
from the EPA; both with regards to queries raised by members of the
Project-affected communities during the hearing and to the Draft Mine and
Process Environment Impact Statement ("EIS"), which the Company submitted to
the EPA in May 2024. Feedback will then be incorporated into the Company's
final EIS, which will be resubmitted to the EPA, as required for the grant of
the EPA permit.
Additional Project Permits
Only following the grant of the EPA permit can the Company obtain the other
permits it requires. A proactive approach has been undertaken by the Company,
with internal preparations well underway, to ensure that the Company can
complete these steps and meet all regulatory requirements in line with the
permitting schedule for the Project.
To expedite the grant of the Mine Operating Permit and associated approvals,
the Company has finalised its draft Mine Operating Plan and Emergency Response
Plan, adhering to the guidance and support provided by the Minerals
Commission.
Comprehensive crop and land surveys for compensation purposes have also been
completed, enabling land acquisition ahead of breaking ground at the Project.
All supplementary permits, including those for water use and explosive
procurement and utilisation, are also progressing as anticipated, enabling
their completion upon receipt of the EPA Permit.
Project Engineering
Through the period, DRA Projects ("DRA") has continued its work to prepare
value-engineering reports on the Front-End Engineering Design ("FEED") package
undertaken for the Ewoyaa Definitive Feasibility Study ("DFS") and deliver an
Engineering, Procurement, Construction, and Management ("EPCM") contract, and
the associated individual packages, which will serve as the foundation for the
execution of the Project.
The Company expects to receive the reports from DRA in the current quarter,
which will enable the award of the EPCM contract post-ratification of the
Ewoyaa Mining Lease.
Feldspar By-Product
The Company believes that the Project represents a major source of domestic
feldspar in Ghana, which is widely used in the ceramics industry.
As reported in the March 2024 Quarterly Report (refer announcement of 24 April
2024), the Feldspar Study undertaken by the Company confirms the viability of
producing and processing feldspar feedstock as by-product of spodumene
concentrate production at Ewoyaa and supports the Company's plans of supplying
feldspar produced at Ewoyaa into the local Ghanaian market.
While expected to generate a modest revenue stream for the Company, the
Company believes that the supply of feldspar produced at Ewoyaa will provide a
significant industrialisation opportunity for its Project-affected
communities, generating long-term value for businesses within the Central
Region and driving the local economy.
Following the submission of the Feldspar Study to the Minerals Commission, as
required under the terms agreed in the grant of the Mining Lease for the
Project, the Company has begun engaging local parties in Ghana to seek
expressions of interest for the feldspar by-product.
The Company is currently working with these parties to establish a preferred
route to market for the feldspar, aimed at maximising benefits to the local
industry. Among these considerations are means to maximise job creation and
enhance value, by establishing, for example, new feldspar processing
facilities or factories.
The Company believes that the supply of feldspar produced at Ewoyaa further
strengthens its social licence to operate with the communities in which it
operates and reflects its commitment to support the long-term socio-economic
development of the Central Region and Ghana more broadly.
Modular DMS Processing
The Company has taken the decision to remove early ore processing using a
modular Dense Media Separation ("DMS") unit, which had been previously
included in the Ewoyaa Definitive Feasibility Study ("DFS"), from the
development schedule for the Project.
The modular DMS unit had initially been identified by the Company as an
opportunity to capitalise on heightened lithium prices to generate early
cashflow ahead of achieving full production from the main DMS plant in H1
2026, as well as a means to train staff on the operation of a smaller-scale
plant and test the Project's logistics before the commencement of full
operations at the main plant.
Considering a median consensus price of US$3,000/t FOB Ghana for spodumene
concentrate (SC6) in 2025, the DFS indicated attractive margins to be
generated through production from the modular DMS unit, easily justifying its
inclusion in the Project's development. At current spodumene concentrate
prices below US$1,000/t, however, margins would be cut significantly.
While the Board believes that lithium prices will recover from current lows,
it is considered unlikely that they will rebound to the highs experienced in
late 2022 in the short term. As such, the Board believes it to be more prudent
to conserve cash and focus on delivery of the main DMS processing plant,
rather than committing it to delivering the modular DMS unit.
In addition, with the Mining Lease yet to be ratified by parliament, the
window of time between the ratification of the Mining Lease and intended
initial production from the modular DMS unit, as indicated in the DFS,
continues to shorten. This not only means less time for the Company to deliver
the modular DMS unit and for staff to train on the smaller plant, but also a
diminishing timeframe of early cashflow being generated from the unit.
With all this being considered, the option to exclude Modular DMS unit
processing from the Project's planned development now outweighs its inclusion.
Subject to the Mining Lease being ratified by parliament in line with the
current schedule for the development of the Project, the Company remains on
track to commission the main DMS plant at Ewoyaa in H1 2026, as detailed in
the DFS.
Mining Lease Submitted to Parliament
Post-period end, the Company received notification that the Mining Lease in
respect of the Project, granted by the Government of Ghana through the
Ministry of Lands and Natural Resources to the Company's subsidiary Barari DV
Ghana Limited in October 2023, had been submitted to Ghana's parliament to
undergo the necessary processes in order for parliament to ratify the Mining
Lease.
The Company currently awaits the ratification of the Mining Lease, which is
required for the Company to advance the Project towards construction and
operation, and continues to undertake activities on the critical path to
deliver the main DMS processing plant.
Fatal Incident at the Ewoyaa Project Site
Post-period end, on 9 July 2024, the Company reported a tragic incident on the
Project site, which sadly resulted in the death of a member of the Company's
workforce.
In accordance with regulations and Company policy, which mandated a work
stand-down, the site has since been cleared for work to resume. This follows
several site visits by the Inspectorate Division of the Minerals Commission,
as part of its investigation into the incident. The Company commits to
ensuring that relevant learnings from the investigation are integrated into
its operations and systems enhanced accordingly.
Our thoughts remain with the family and friends of our teammate, and we
continue to offer our full support to all those affected.
Exploration
Increased Ewoyaa Mineral Resource Estimate
Post-period end, the Company announced an increase in the total Mineral
Resource Estimate(1) ("MRE" or "Resource") at Ewoyaa to 36.8Mt at 1.24%
Li(2)O, reported in accordance with the JORC Code (2012).
The MRE(1) increase follows a targeted drilling programme aimed at supporting
the mine build activities at the Project. This included sterilisation drilling
to support the plant and haul road design and resource conversion drilling to
convert Inferred resources to Indicated and Measured to provide mine plan
optionality. The drilling programme resulted in the combined Measured and
Indicated resource increasing to 81% of the total Mineral Resource(1) (to 29.8
Mt at 1.26% Li(2)O).
During the drilling programme, the Dog-Leg target was identified, with
prioritised drilling subsequently undertaken, which returned multiple broad
and high-grade intersections, from which the Company has identified a
shallow-dipping, near-surface mineralised pegmatite body with true thickness
up to 35m. The Dog-Leg target contributed 890,892 tonnes, comprising 332,100
tonnes at 1.01% Li(2)O Indicated and 558,792 tonnes at 1.13% Li(2)O Inferred,
of the increase in resources to 36.8Mt at 1.24% Li(2)O(1).
The increased MRE(1) was based on 168,015m of drilling completed at the
Project to date, inclusive of infill and extensional drilling undertaken since
the February 2023 Resource Estimate reported by the Company, comprising
148,865m of reverse circulation ("RC"), 12,639m of diamond core ("DD"), 5,311m
of reverse circulation with diamond tail ("RCD") and 1,200m of reverse
circulation hydrology holes ("RCH").
The MRE(1) includes a total of 3.7Mt at 1.37% Li(2)O in the Measured category,
26.1Mt at 1.24% Li(2)O in the Indicated category and 7.0Mt at 1.15% Li(2)O in
the Inferred category (refer Table 1).
Table 1: Ewoyaa Mineral Resource Estimate(1) (0.5% Li(2)O Cut-off)
Measured Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Primary 3.7 1.37 51
Total 3.7 1.37 51
Indicated Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 0.5 1.08 5
Primary 25.6 1.25 319
Total 26.1 1.24 324
Inferred Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 1.8 1.12 20
Primary 5.2 1.16 60
Total 7.0 1.15 80
Total Mineral Resource
Type Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Weathered 2.3 1.11 25
Primary 34.5 1.25 430
Total 36.8 1.24 455
Note: The Mineral Resource has been compiled under the supervision of Mr.
Shaun Searle who is a director of Ashmore Advisory Pty Ltd and a Registered
Member of the Australian Institute of Geoscientists. Mr. Searle has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity that he has undertaken to qualify as a
Competent Person as defined in the JORC Code.
All Mineral Resources figures reported in the table above represent estimates
at June 2024. Mineral Resource estimates are not precise calculations, being
dependent on the interpretation of limited information on the location, shape
and continuity of the occurrence and on the available sampling results. The
totals contained in the above table have been rounded to reflect the relative
uncertainty of the estimate. Rounding may cause some computational
discrepancies.
Mineral Resources are reported in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
Joint Ore Reserves Committee Code - JORC 2012 Edition).
Following the upgrade, 81% of the Total Resource(1) now sits in the higher
confidence Measured and Indicated categories (3.7Mt at 1.37% in the Measured
category, 26.1Mt at 1.24% in the Indicated category and 7.0Mt @ 1.15% Li₂O
in the Inferred category).
With the Company's exploration portfolio still vastly unexplored, the Company
believes there remains significant potential to grow the Resource(1) further.
While the Company's current focus remains on advancing the Project towards
shovel-readiness, step-out drilling at five priority deposits is planned, as
well as one new exploration target identified for initial reverse circulation
("RC") evaluation.
Assay Results from Q1 2024 Drilling
During the period, the Company announced assay results for resource extension
drilling at the Dog-Leg target and reverse circulation ("RC") sterilisation
drilling undertaken at the proposed plant site, together totalling 4,101m,
completed in H1 2024.
Dog-Leg
Drilling at the Dog-Leg target delivered high-grade and broad extensional
drill intersections including highlights at a 0.4% Li(2)O cut-off and a
maximum 4m of internal dilution of 27m at 1.85% Li(2)O from 126m; 15m at 1.08%
Li(2)O from 126m; and GRC1058: 8m at 0.93% Li(2)O from 88m.
Figure 2: Location of reported assay results with highlight drill
intersections on greyscale topography background
The results are significant in that a shallow-dipping, mineralised pegmatite
body has been intersected in multiple drill holes with true thickness of up to
35m, which added 890,892 near-surface resource tonnes (332,100 tonnes at 1.01%
Li(2)O Indicated and 558,792 tonnes at 1.13% Li(2)O Inferred) to the increased
MRE(1) (refer announcement of 30 July 2024).
Sterilisation Drilling
In addition to the drilling at Dog-Leg, the Company completed 3,177m of
sterilisation drilling in 21 holes at the proposed plant site. No
mineralisation was reported in drilling, providing confidence in the proposed
plant site location.
Senya Beraku
Following the grant of the Senya Beraku prospecting licence to the Company's
wholly-owned Ghanaian subsidiary Green Metals Resources ("GMR") in November
2023, the Company commenced field work at the licence during the period,
representing the first lithium exploration to be completed over the licence.
The licence, located 20km east of the known Egyasimanku Hill-Winneba spodumene
pegmatite field and within 70km of the footprint of the Company's flagship
Ewoyaa Lithium Project (refer Figure 3), represents 82.11km(2) of highly
prospective, unexplored tenure offering considerable value upside to the
Company through successful exploration.
Figure 3: Field work underway at the Senya Beraku licence, located in the east
of the Company's Cape Coast Lithium Portfolio in Ghana
The Company's field teams completed the soil geochemical sampling programme
across the licence area post-period end, collecting 5,237 samples from the
planned 5,405-sample programme (the lower number of actual samples collected
is not unexpected and reflects unsuitable sites encountered due to
geomorphology and anthropomorphic activities).
Figure 4: Map indicating the location of soil geochemistry samples
collected and selected first pass mapping observations over the Senya Beraku
prospecting licence (base map is regional geology by Ghana Geological Survey
Authority)
Soil samples collected have been submitted for in-house processing and
analysis at the Company's Mankessim facility using pXRF (portable X-Ray
Fluorescence) and LiBS (Laser-induced breakdown spectroscopy) analysers.
Undertaken concurrent with the soil sampling programme, the Company has
completed first pass surface geological mapping across the prospective
Birimian geology within the licence. Weathered, coarse-grained pegmatite units
have been mapped (no spodumene mineralisation observed), with rock chip
samples being collected and submitted for assay by Intertek (sample
preparation in Tarkwa, Ghana and analysis in Perth, Australia).
All the soil samples will be processed and analysed, following which data
interpretation will be undertaken on the entire tenement area, with a view to
identifying geochemical anomalies for detailed follow-up mapping and possible
auger drilling evaluation and ultimately reverse circulation drill testing,
where warranted.
Corporate
Project Funding
Under the Project's current funding arrangements, and considering a total
development expenditure of US$185m for the Project, as indicated in the DFS,
Piedmont is required to contribute the first US$70m of development expenditure
as sole funding, and 50% of all development expenditure thereafter.
A portion of Piedmont's expenditure obligations across certain categories of
development expenditure relating to the Project remains outstanding (US$1.4m
for the period from October to June 2024). Piedmont has contributed 50% of the
development expenditure across these categories for the same period. The
Company remains actively engaged in discussions with Piedmont concerning these
amounts and an established process exists for resolution.
Exploration and studies activities are currently jointly funded by the Company
and Piedmont, with neither party having any outstanding expenditure
obligations.
During the period of April to June 2024, Piedmont contributed a total of
US$$3.0m (A$4.4m) towards the funding of the Project.
Cash Flow
Figure 5: Net cash flows for June 2024 quarter (AUD)
Ghana Stock Exchange Listing
As agreed under the terms of the Mining Lease for the Project and following
the approval of the Ghana Stock Exchange's ("GSE") Listing Committee and
Ghana's Securities and Exchange Commission ("SEC"), the Company completed the
listing of its entire share capital, being 649,669,053 Ordinary Shares, by
introduction on the Main Market of the GSE on 13 May 2024. No new shares were
issued in connection with the listing.
The listing ceremony, held at Cedi House in Accra, celebrated Atlantic Lithium
becoming the first lithium company to list on the GSE, reflecting the
beginning of a significant new chapter in Ghana's long-term mining history.
The event welcomed key representatives of Ghana's mining industry, including
Honourable Minister of Lands and Natural Resources Samuel A. Jinapor and
leading figures from the Minerals Commission, the Minerals Income Investment
Fund ("MIIF"), the Ghana Chamber of Mines, the GSE, the SEC, and the
Australian High Commission to Ghana.
The ceremony demonstrated the strong ongoing support from key local
stakeholders for the continued advancement of the Project towards construction
and operation.
The Company believes that the GSE listing represents its firm commitment to
the long-term development of the Ghanaian economy by providing greater wealth
creation opportunities for Ghanaians and financial institutions in Ghana, as
well as the closer alignment of the Company's objectives with the best
interests of its local stakeholders, who now have the opportunity to share
ownership in the Company's lithium ambitions.
Atlantic Lithium shares trade on the GSE under the ticker "ALLGH".
Board Appointment
In line with the agreed terms of the Minerals Income Investment Fund's
("MIIF") US$5m subscription in the Company ("Subscription"), in May 2024, the
Company appointed MIIF Chief Executive Officer Edward Nana Yaw Koranteng to
the Board of Directors as Non-Executive Director.
Edward Koranteng is a lawyer and corporate and investment banker with over 23
years of experience. He has held the position of Chief Executive Officer of
MIIF since 2021, in which role he oversees the management of Ghana's equity
interest in mining companies, manages all royalties paid to the state from
mining activities and supports the growth of the mining industry through
long-term, sustainable investments in the sector.
Through his appointment, Atlantic Lithium welcomes greater Ghanaian
representation in the direction of the Company, which it believes is of
paramount importance for the long-term success of the Company.
MIIF's US$5m Subscription, which forms part of its planned US$32.9m total
investment in Atlantic Lithium and its Ghanaian subsidiaries ("Strategic
Investment") to expedite the development of the Company's flagship Ewoyaa
Lithium Project, was completed in January 2024.
The Company is currently working closely with MIIF to finalise the second part
of the Strategic Investment, comprising a US$27.9m Project-level investment to
acquire a 6% contributing interest in the Company's lithium interests in Ghana
("Ghana Portfolio").
Offtake Partnering Process
During the period, the Company continued to progress its ongoing competitive
offtake partnering process to secure funding for a portion of the remaining
50% available feedstock from Ewoyaa.
The objective of the process is to attract funding offers to sufficiently
cover the Company's allocation of development expenditure for the Project, to
expedite and de-risk the development of the Project, realise attractive terms
for any offtake contracted and secure a well-credentialled partner that will
support the Company's and Ghana's objectives of supplying lithium into the
global electric vehicle market.
Through the process, the Company has indicated its preferred terms of up to
500,000t of spodumene concentrate to be contracted over a 3-5-year period,
using a market-based pricing mechanism in exchange for competitive funding.
As part of Stage 2 of the process, the Company has received and reviewed
formal proposals from the parties that were taken forward from Stage 1,
completed more detailed due diligence into the remaining parties and, where
appropriate, completed site visits to the respective project sites and/or
offices of the remaining parties.
The Company is now progressing negotiations on key agreements and will update
shareholders in due course.
MIIF Project-level Investment
Under the terms of Stage 2 of MIIF's Strategic Investment, and subject to the
Company reaching a binding agreement with MIIF, MIIF has agreed to invest
US$27.9m in the Company's Ghanaian subsidiaries to acquire a 6% contributing
interest in the Ghana Portfolio, inclusive of the Project.
The US$27.9m Project-level investment and the contributing interest is
expected to take the form of funding of development, exploration and studies
expenditure to support the advancement of the Project.
The Company is currently working closely with MIIF to finalise the
Project-level investment.
This follows the completion of Stage 1 in January 2024, comprising MIIF's
subscription for 19,245,574 Atlantic Lithium shares for a value of US$5m.
Conferences Attended
The Company attended the following conferences and events during the period:
- Fastmarkets, Las Vegas (24-27 June)
- West African Mining & Power Conference, Accra (5-7 June)
- Canaccord Genuity Global Metals & Mining Conference, Palm
Desert, California (7-9 May)
- Paydirt Battery Minerals Conference, Perth (16-17 April)
Sustainability
Donations to Mfantsiman and Abura-Asebu Kwamankese District Assembly Schools
During the period, the Company was proud to make donations to the Mfantsiman
Municipal Assembly and the Abura-Asebu Kwamankese District Assembly to support
the rebuilding of several schools that had been damaged as a result of heavy
rainfall in the Central Region.
Alongside its aim to build the first major mine in the Region, the Company
believes it is important to support the local communities in which the Company
operates to ensure the Project delivers a positive impact that lasts long
after the life of the mine. In this way, the Company hopes to maintain a close
collaboration with local residents throughout its operations.
Share Capital Changes - Ordinary Shares, Options and Performance Rights
Between 1 April and the date of this report, a total of 16,500,000 options,
that had been granted under the Company's Employee Share Option Plan, lapsed
unexercised.
A summary of movement and balances of equity securities between 1 January 2024
and the date of this report is as follows:
Ordinary Shares Unquoted Options Unquoted performance rights
On issue at start of Quarter 649,669,053 41,822,787 9,298,935
Employee Share Options lapsed (02 April 2024) (500,000)
Employee Share Options lapsed (23 April 2024) (16,000,000)
Total Securities on issue at date of this report 649,669,053 25,322,787 9,298,935
Compliance
During the quarter, the Company spent A$5.7m on its exploration, feasibility,
and development activities for its Ewoyaa Lithium Project in Ghana. In
accordance with the agreement announced on 1 July 2021, exploration and
feasibility activities are 50% funded by Piedmont Lithium Inc. ("Piedmont"),
with Piedmont sole funding the first US$70m towards the total US$185m of
development expenditure forecasted in the DFS for the Project. Funding is
shared equally thereafter.
Appendix 5B expenditure disclosure
As at end 30 June 2024, the Company had cash resources of A$12.7m and no debt.
Exploration, feasibility, and development activities cash expenditure on the
Project during the quarter was A$5.7m. Piedmont Lithium Inc. funded A$4.4m in
the quarter.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity: ATLANTIC LITHIUM LIMITED
ABN: 17 127 215 132 Quarter ended ("current quarter"): 30 June 2024
Consolidated statement of cash flows Current quarter Year to date (12 months)
$A'000
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (308) (2,445)
(e) administration and corporate costs (2,146) (6,786)
1.3 Dividends received (see note 3) - -
1.4 Interest received - -
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other Income - 99
1.9 Net cash from / (used in) operating activities (2,454) (9,132)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (236) (722)
(d) exploration, feasibility, and development (5,716) (24,432)
(e) investments - (154)
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - 10
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) -
2.5 Other - Piedmont Contributions from farm-in arrangement 4,380 16,899
2.6 Net cash from / (used in) investing activities (1,572) (8,399)
3. Cash flows from financing activities - 15,605
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - (551)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - 15,054
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 17,098 15,346
4.2 Net cash from / (used in) operating activities (item 1.9 above) (2,454) (9,132)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (1,572) (8,399)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - 15,054
4.5 Effect of movement in exchange rates on cash held (393) (190)
4.6 Cash and cash equivalents at end of period 12,679 12,679
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 12,673 17,088
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash 6 10
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 12,679 17,098
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 644
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 128
in item 2
6.1 & 6.2 are payments of salaries/bonuses/fees (including superannuation)
to related parties.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
NOTE: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (2,454)
8.2 (Payments for exploration & evaluation classified as investing activities) (5,716)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (8,170)
8.4 Cash and cash equivalents at quarter end (item 4.6) 12,679
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 12,679
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.6
NO
TE
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the
current level of net operating cash flows for the time being and, if not, why
not?
Answer: Yes
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer:
· The Ewoyaa Lithium Project is funded under a co-development
agreement with Piedmont Lithium Inc. During July 2024, Piedmont contributed a
total of US$1.5m under the co-development agreement.
· Atlantic Lithium has agreed non-binding Heads of Terms with the
Minerals Income Investment Fund of Ghana ("MIIF") to invest in its Ghana
subsidiaries. The proposed investment will support the development of the
Project and the broader Cape Coast Lithium Portfolio in Ghana. Under the terms
of the non-binding agreement, MIIF intends to invest an initial US$27.9m to
acquire a 6% contributing interest in the Company's Ghana Portfolio and will
make ongoing contributions through monthly cash calls as the Project develops.
· Completion of Stage 2 of the ongoing competitive offtake
partnering process for a portion of the remaining 50% offtake from Ewoyaa to
secure funding to sufficiently cover the Company's allocation of the
development expenditure for the Project.
8.8.3 Does the entity expect to be able to continue its operations
and to meet its business objectives and, if so, on what basis?
Answer: Yes. The Company has funding available (see 8.8.2).
NOTE: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 30 July 2024
Authorised by: Authorised by the Board of Atlantic Lithium Limited
Notes
1. This quarterly cash flow report and the
accompanying activity report provide a basis for informing the market about
the entity's activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes to
disclose additional information over and above the minimum required under the
Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been
prepared in accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as
cash flows from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release
to the market by your board of directors, you can insert here: "By the board".
If it has been authorised for release to the market by a committee of your
board of directors, you can insert here: "By the [name of board committee - eg
Audit and Risk Committee]". If it has been authorised for release to the
market by a disclosure committee, you can insert here: "By the Disclosure
Committee".
5. If this report has been authorised for release
to the market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
End Note
(1) Ore Reserves, Mineral Resources and Production Targets
The information in this quarterly 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 in this announcement relating to the
Mineral Resource Estimate ("MRE") of 36.8Mt @ 1.24% Li₂O for Ewoyaa is
extracted from the Company's 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. 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 quarterly report, the MRE announcement, dated 30 July 2024,
the Ewoyaa Lithium Project Definitive Feasibility Study announcement, dated 29
June 2023 (in which the Company reported Ore Reserves and Production Targets
in respect of the Project), or the Grant of the Ewoyaa Mining Lease
announcement, dated 20 October 2023.
(2) Ewoyaa to become one of the largest spodumene concentrate producers
globally - Based on a comparison of targeted spodumene concentrate production
capacity (ktpa, 100% basis) of select hard rock spodumene projects globally
(refer Company presentation dated 8 September 2023).
Competent Persons
Information in this report relating to the exploration results is based on
data reviewed by Mr I. Iwan Williams (BSc. Hons Geology), General Manager -
Exploration of the Company. Mr Williams is a Member of the Australian
Institute of Geoscientists (#9088) who has in excess of 30 years' experience
in mineral exploration and is a Qualified Person under the AIM Rules. Mr
Williams consents to the inclusion of the information in the form and context
in which it appears.
Information in this report relating to Mineral Resources was compiled by Shaun
Searle, a Member of the Australian Institute of Geoscientists. Mr Searle has
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and
is a Qualified Person under the AIM Rules. Mr Searle is a director of Ashmore.
Ashmore and the Competent Person are independent of the Company and other than
being paid fees for services in compiling this report, neither has any
financial interest (direct or contingent) in the Company. Mr Searle consents
to the inclusion in the report of the matters based upon the information in
the form and context in which it appears.
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
774km(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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DRLURSSRSNUBORRRecent news on Atlantic Lithium
See all newsREG - Atlantic Lithium Ltd - Grant of Mine Operating Permit
AnnouncementREG - Atlantic Lithium Ltd - 2024 Annual Financial Report
AnnouncementREG - Atlantic Lithium Ltd - Grant of Ewoyaa Lithium Mining Project EPA Permit
AnnouncementREG - Atlantic Lithium Ltd - Grant of Performance Rights to Employees
AnnouncementREG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
Announcement