REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
30/01/2025 07:15
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RNS Number : 2657V Atlantic Lithium Limited 30 January 2025
30 January 2025
Quarterly Activities and Cash Flow Report
for the quarter ended 31 December 2024
Atlantic Lithium achieves key milestones in the Ewoyaa Lithium Project
permitting process
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 release its Quarterly Activities and Cash Flow Report for the
period ended 31 December 2024.
Highlights
Project Development:
- Mine Operating Permit granted in respect of the Company's flagship
Ewoyaa Lithium Project ("Ewoyaa" or "the Project") in Ghana, representing the
final regulatory approval required prior to the commencement of construction
of the Project.
- Land Use Certificate issued by the Spatial Planning Committee of
the Mfantseman Municipal Assembly, marking the approval for the land within
the Project's Mining Area to be rezoned for mining purposes, as required prior
to commencing construction and mining activities.
- Post-period end, the Project has been granted a Water Use Permit
by the Water Resources Commission, serving as the Commission's authorisation
of the extraction of water from the Ochi-Amissah River for use at the Project.
Exploration:
- Post-period end, reported an updated JORC (2012) compliant Mineral
Resource Estimate of 36.8Mt at 41.9% feldspar ("Feldspar MRE") in respect of
the Project.
- The Feldspar MRE considers the mine plan over the Life of Mine of the
Project, as detailed in the Ewoyaa Definitive Feasibility Study ("DFS") and
reaffirms the Company's belief that Ewoyaa represents a major source of
feldspar in Ghana, which it intends to supply to the local Ghanaian ceramics
market.
- Completion of soil geochemical sampling programme over the
Agboville exploration licence in Côte d'Ivoire, with 1,594 samples collected
from planned 1,620 sites.
- Soil geochemical survey currently underway over the Rubino
exploration licence in Côte d'Ivoire.
Corporate:
- Completion of successful A$10m Equity Placing to contribute to
funding the advancement of the Project through key activities towards Final
Investment Decision ("Project FID").
- Equity Placing led by the Company's largest shareholder, Assore
International Holdings Limited ("Assore"), and supported by Atlantic Lithium
Executive Chairman Neil Herbert and Chief Executive Officer ("CEO") Keith
Muller, as well as existing and new institutional shareholders.
- Commitment from the intended CEO and Managing Director of the
enlarged company following the proposed merger of the Company's strategic
funding partner for the Project, Piedmont Lithium Inc. (Nasdaq: PLL, ASX: PLL,
"Piedmont"), and Sayona Mining (ASX: SYA; OTCQB: SYAXF, "Sayona"), in respect
of the development of the Project.
- Cash on hand at end of quarter was A$11.8m.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"Atlantic Lithium continues to make impressive progress towards the completion
of the permitting process in respect of the Ewoyaa Lithium Project, receiving
three key Project approvals through the December quarter and into January: the
Mine Operating Permit, the Land Use Certificate and the Water Use Permit.
These achievements reflect the unwavering hard work of our team to deliver on
the permitting milestones in a timely fashion as we await the ratification of
the Mining Lease by Ghana's parliament.
"Having completed a A$10m Equity Placing during the period, we continue to
undertake activities that are critical to the advancement of the Project
towards Final Investment Decision.
"We look forward to providing further updates in due course."
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/2657V_1-2025-1-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2657V_1-2025-1-30.pdf)
Authorised for release by Amanda Harsas, Finance Director and Company
Secretary, Atlantic Lithium Limited.
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.
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, Ghana
Interest in Tenements
At the end of the quarter ending 31 December 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 Renewal submitted
(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 Renewal submitted
(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 22.05.24 21.05.28 4 years None
(100% Atlantic)
PR694 Agboville Khaleesi Resources SARL 08.05.24 07.05.28 4 years None
(100% Atlantic)
* A renewal application has been submitted to the relevant Government mining
department and the Group has no reason to believe the renewal will not be
granted.
December Quarter Activities
Project Development
Permitting
Representing the final regulatory approval required by the Company ahead of
commencing construction, the Project was granted a Mine Operating Permit by
the Minerals Commission of Ghana during the period. The grant of the Mine
Operating Permit constitutes a major de-risking milestone for the Project and
a key step in moving Ewoyaa towards Project FID.
In addition, the Project was issued a Land Use Certificate by the Spatial
Planning Committee of the Mfantseman Municipal Assembly. The certificate
details the approval of the land contained within the Project's Mining Area
(as set out in the Ewoyaa Mining Lease) to be rezoned for mining purposes, as
required prior to commencing construction and mining activities at Ewoyaa.
Post-period end, the Company also received notification from the Water
Resources Commission of the grant of a Water Use Permit in respect of the
Project. The permit authorises the Company to extract raw water from the
Ochi-Amissah River for use at the Project for the purposes detailed in the
Definitive Feasibility Study ("DFS"; refer announcement of 29 June 2023) and
serves as a critical milestone to enable the successful operation of the
Project.
Having secured all of the permits required to begin construction, the Company
currently awaits the ratification of the Ewoyaa Mining Lease by Ghana's
parliament.
Ewoyaa Mining Lease
The Company notes the completion of the democratic presidential and
parliamentary elections held in Ghana in December 2024 and the peaceful
transition of power that has followed. Firmly believing that the advancement
of the Project is in the best interests of the residents of the Ewoyaa
catchment area, the Central Region and Ghana more broadly, the Company remains
confident that ratification of the Mining Lease will be forthcoming in
accordance with due parliamentary process.
Project Engineering
The Company has completed the technical refinement of the Ewoyaa DFS
undertaken with lithium Dense Media Separation specialists DRA Projects
through the completion of a Front-End Loading ("FEL") engineering package,
whereby the plant design has been further optimised and greater clarity added
to the Project's capital expenditure and sustaining capital considerations.
The optimisation work has demonstrated the suitability of the Project's
tailings material to be filtered and dry stacked, de-risking the Project by
removing the need for a Tailings Storage Facility.
The Project team is currently validating the technical work completed, as well
as preparing the documentation to support the Board in its Project FID,
including the drafting of contracts for all major services.
Exploration
Feldspar MRE
Post-period end, the Company reported an updated JORC (2012) compliant Mineral
Resource Estimate of 36.8Mt at 41.9% feldspar ("Feldspar MRE") in respect of
the Project (refer announcement of 30 January 2025).
The Feldspar MRE is based on the same geological model that resulted in the
36.8Mt at 1.24% Li(2)O Mineral Resource Estimate(1) for the Project ("Lithium
MRE"), as announced by the Company on 30 July 2024, and considers the mine
plan in respect of the Project's Life of Mine spodumene concentrate
production, as detailed in the Ewoyaa Definitive Feasibility Study ("DFS",
refer announcement of 29 June 2023).
The Feldspar MRE includes 29.8Mt (81%) in the Measured and Indicated
categories, comprising a total of 3.7Mt at 40.2% feldspar in the Measured
category, 26.1Mt at 42.1% feldspar in the Indicated category and 7.0Mt at
42.4% feldspar in the Inferred category. In addition to the feldspar, quartz
and muscovite were also estimated and included as potential by-products of
spodumene concentrate production at Ewoyaa (refer Table 1).
The Company previously reported a Maiden Feldspar MRE for the Project (refer
announcement of 12 December 2023), confined to the Ewoyaa Main, Ewoyaa
Northeast, Ewoyaa South-1 and Ewoyaa South-2 deposits, which constituted
approximately the first five years of spodumene production. The upgraded
Feldspar MRE now represents all the spodumene pegmatites drilled at Ewoyaa,
with the normative mineralogy calculated from total fusion X-ray fluorescence
(XRF) major element data using a least squares method.
The Feldspar MRE enables the Company to include Life of Mine production of
feldspar in future revisions of the Ewoyaa feasibility studies, expected to
drive down operating costs for the Project, and in its strategy to bring the
feldspar to market.
The Company believes that Ewoyaa could represent a major domestic producer of
feldspar, which it intends to supply to the local Ghanaian ceramics market.
Metallurgical test work and ceramic application trials undertaken using
feldspar samples from Ewoyaa for vitreous hotelware, high-end earthenware and
floor tiles produced acceptable ware, comparable to industry standards in all
aspects, including contraction, water absorption, density, porosity, shape,
colour and appearance (refer announcement of 12 December 2023).
Table 1: Ewoyaa Feldspar MRE (0.5% Li(2)O Cut-off)
Measured Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Primary 3.7 32.6 1.20 40.2 1.48 7.2 0.27
Total 3.7 32.6 1.20 40.2 1.48 7.2 0.27
Indicated Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 0.5 34.5 0.16 37.6 0.17 8.4 0.04
Primary 25.6 31.8 8.14 42.1 10.80 6.3 1.61
Total 26.1 31.8 8.30 42.1 10.98 6.3 1.65
Inferred Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 1.8 36.0 0.65 41.3 0.75 6.3 0.11
Primary 5.2 32.2 1.67 42.8 2.22 6.1 0.32
Total 7.0 33.2 2.32 42.4 2.97 6.2 0.43
Total Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 2.3 35.7 0.81 40.6 0.92 6.7 0.15
Primary 34.5 31.9 11.02 42.0 14.51 6.4 2.20
Total 36.8 32.2 11.83 41.9 15.43 6.4 2.35
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 and a Qualified Person under the
AIM Rules for Companies.
All Mineral Resources figures reported in the table above represent estimates
at January 2025. 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).
The Feldspar MRE is based on the Lithium MRE reported by the Company in July
2024.
Côte d'Ivoire
The Company's soil geochemical sampling programme over the Agboville
exploration licence in Côte d'Ivoire concluded during the quarter, with 1,594
samples collected from 1,620 planned sites. Processing of the samples is
underway in Côte d'Ivoire ahead of the samples being transported to the
Company's Mankessim site for in-house analysis to identify anomalies for
follow-up ground evaluation and possible drilling.
The Company's geologists and geological contractor (SEMS) commenced a soil
geochemical survey over the Rubino exploration licence post-period end, with
958 samples collected from 1,641 planned sites (as of 26 January 2025).
Traverse mapping also continues across both the Agboville and Rubino licences
in conjunction with the soil sampling programme.
The Company believes that its licences in Côte d'Ivoire, which is ranked in
the top five for African jurisdictions for mining investment (according to the
Fraser Institute Annual Survey of Mining Companies, 2023), represent highly
prospective tenure for lithium discovery.
Senya Beraku and Cape Coast
The Company's geologists are continuing the follow-up mapping across the Senya
Beraku and Cape Coast licences in Ghana, with the aim of ground-truthing soil
geochemical anomalies identified.
Corporate
Successful A$10m Equity Placing
Through an institutional placement ("Equity Placing") led by the Company's
largest shareholder, Assore International Holdings Limited ("Assore"), the
Company successfully raised a total of A$10m (£5.1m/US$6.7m) at a price of
A$0.23 (equivalent to 11.73 pence) per New Share ("Issue Price").
As part of the Equity Placing, Assore subscribed for US$5m (A$7.5m/£3.9m)
through the allotment of 32,775,013 New Shares at the Issue Price. Atlantic
Lithium Executive Chairman Neil Herbert, Chief Executive Officer Keith Muller
and former Non-executive Director Edward Koranteng, who resigned from his role
on the Board post-period end, (together the "Participating Directors") also
subscribed for 1,260,870 New Shares at the Issue Price, equating to an
aggregate of A$290,000.
The proceeds of the Equity Placing are to be used to enable the continued
advancement of the Ewoyaa Lithium Project towards Project FID, including the
completion of an optimisation and technical refinement of the Ewoyaa DFS,
necessary work to ensure that all permitting and operating requirements are
met prior to breaking ground at the Project, and for working capital purposes.
At such a critical period in the development of the Project, the Company
believes that the participation in the Equity Placing of Assore and the
Participating Directors highlights the unwavering belief of the Company's
partners and leadership team in achieving commercial production of spodumene
concentrate at Ewoyaa.
Proposed Merger of Piedmont Lithium and Sayona Mining
Following the announcements made by Piedmont Lithium Inc. (Nasdaq: PLL, ASX:
PLL, "Piedmont"), the Company's strategic funding partner at Ewoyaa, and North
American Lithium producer Sayona Mining (ASX: SYA; OTCQB: SYAXF, "Sayona") on
19 November 2024 regarding the proposed merger of Piedmont and Sayona, with
Sayona being the ultimate parent entity ("MergeCo"), Atlantic Lithium welcomes
the commitment made by Lucas Dow, the intended CEO and MD of MergeCo, in
respect of the continued development of the Project towards production.
The Company believes that the Proposed Merger will significantly de-risk the
funding of the Project and enhance the Project's exposure globally, including
to potential offtakers, and will providing opportunities for Atlantic Lithium
staff members to leverage MergeCo's considerable expertise in large-scale mine
development, operation and lithium production.
Upon completion of the Proposed Merger, MergeCo will assume Piedmont's prior
obligations, as detailed under the terms of Atlantic Lithium's co-funding
agreement with Piedmont in respect of the Project. Accordingly, MergeCo will
be required to sole fund US$70m towards the development expenditure for the
Project, with any cost overruns shared equally between the Company and
MergeCo, to earn up to 50% of the Company's interest in the Project and for
the right to an offtake agreement for 50% of the Project's spodumene
concentrate production at market rates.
The Company looks forward to working alongside the team at MergeCo to deliver
upon its shared goals at Ewoyaa.
Available Offtake
Atlantic Lithium continues to receive significant interest for its lithium
products, noting it is one of a limited number of hard rock projects globally
that is well placed to quickly enter production. As a result of the delays to
ratification of the Ewoyaa Mining Lease and the subdued lithium market
environment, the Company has elected to pause its advisor-led offtake
partnering process and will continue to engage directly with interested
parties across the battery metals supply chain who express inbound interest
for offtake. The Company remains confident that it will secure favourable
offtake terms that ensure maximum value for the Company's shareholders.
Project Funding
The optimisation and technical refinement of the DFS will provide the Company
with additional information relating to the funding required to meet
forecasted Project development and working capital demands to achieve Project
commercial production and the generation of positive operating cashflows.
Under the Project's current funding and joint venture arrangements, Piedmont
Lithium ("Piedmont") is required to contribute the first US$70m of development
expenditure as sole funding to complete its earn-in to 50% of the Company's
Project ownership, with all development expenditure and other Project
expenditure equally shared by both the Company and Piedmont thereafter.
Activities associated with pursuing financing options to support the Company's
Project development obligations have been impacted by the delay in the
parliamentary ratification of the Ewoyaa Mining Lease. Activities remain
ongoing and are expected to be further advanced following the ratification of
the Mining Lease. Updates relating to Project funding will be provided in due
course.
Current expenditure relating to the Project is being jointly funded by
Atlantic Lithium and Piedmont. A portion of Piedmont's expenditure obligations
across certain categories of development expenditure relating to the Project
remains outstanding (US$6.0m for the period from October 2023 to December
2024). Piedmont has contributed 50% of the development expenditure across
these categories for the same period. The Company remains 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 October to December 2024, Piedmont contributed a total of
US$0.5m (A$0.75m) towards the funding of the Project.
Cash Flow
Figure 2: Net cash flows for December 2024 quarter (AUD)
MIIF Project-level Investment
The Company continues to work with the Minerals Income Investment Fund
("MIIF") to finalise MIIF's US$27.9m investment in the Company's Ghanaian
subsidiaries to acquire a 6% contributing interest in the Ghana Portfolio,
inclusive of the Project, which constitutes Stage 2 of its Strategic
Investment in the Company.
This follows the completion of Stage 1, comprising MIIF's subscription for
19,245,574 Atlantic Lithium shares for a value of US$5m, in January 2024.
Board Change
Post-period end, Edward Nana Yaw Koranteng resigned from his position as
Non-Executive Director and Chairman of the Remuneration and Nomination
Committee of the Board. Mr. Koranteng held the position of Non-Executive
Director in accordance with MIIF's entitlement to appoint a nominee director
to the Company's Board, as agreed under the terms of MIIF's US$5m subscription
in the Company (refer announcement of 24 January 2024), and his resignation
follows his departure from MIIF earlier in the month.
Stakeholder Engagement
The Company attended the following conferences and industry events during the
period:
- Ghana Mining Industry Awards, Accra (22 November)
- Swiss Mining Institute, Zurich (19-22 November)
- 121 Mining Investment, London (14-15 November)
- AFSIC - Investing in Africa, London (8 October)
- West Africa Mining Security (WAMS) Conference, Accra (1-2 October)
Sustainability
Ghana Mining Industry Awards
At the Ghana Mining Industry Awards, held by the Ghana Chamber of Mines in
Accra, members of the Atlantic Lithium team were proud to join Ghanaian
geologist Mrs. Alexandra Amoako-Mensah on stage to collect an honorary award
for her outstanding contributions to the mining industry. The award recognised
Mrs. Amoako-Mensah's trailblazing role for women in the sector across her
impressive 40-year career, which includes the important part she played in
unearthing Ghana's lithium production potential through the publication of her
1971 thesis on the potential for the discovery of spodumene pegmatites in
Saltpond, which led to the discovery of the Ewoyaa Lithium Project.
West Africa Mining Security Conference
Atlantic Lithium was pleased to support the West Africa Mining Security
Conference ("WAMS") which took place in Accra in October 2024. The event,
which is run by the Australian High Commission in Ghana in conjunction with MS
Risk and Australia-Africa Minerals & Energy Group (AAMEG), welcomes sector
participants and experts to discuss regional security trends and operational
challenges, and share relevant information on recent developments to inform
security and investment decisions in West Africa.
Share Capital Changes - Ordinary Shares, Options and Performance Rights
Between 1 October 2024 and the date of this report, A$10.3m was raised from
an institutional share placement at a price of A$0.23 per new share. A total
of 43,478,620 new fully paid ordinary shares of no-par value each in the
Company were issued.
Between 1 October and the date of this report, a total of 4,000,000 options,
that had been granted under the Company's Employee Share Option Plan, lapsed
unexercised.
On 23 December 2024, 6,971,049 performance rights over new ordinary shares of
no-par value each were issued to certain senior employees and executive
directors of the Company. In the same month, 2,113,862 performance rights over
new ordinary shares of no-par value each lapsed.
A summary of movement and balances of equity securities between 1 October 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 22,722,787 10,701,427
Shares issued-Institutional placement (30 Oct 2024) 9,442,378
Performance Rights lapsed (9 Dec 2024) (1,728,842)
Performance Rights lapsed (10 Dec 2024) (385,020)
Shares issued-Institutional placement (11 Dec 2024) 34,035,882
Employee Share Options lapsed (11 Dec 2024) (4,000,000)
Performance Rights Granted (23 Dec 2024) 6,971,049
Total Securities on issue at date of this report 693,147,313 18,722,787 15,558,614
Compliance
During the quarter, the Company spent A$6.2m 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, with Piedmont sole funding
the first US$70m of Project development expenditure. Funding is shared equally
thereafter.
Payments to Related Parties of the Entity and their Associates
Appendix 5B includes amounts in items 6.1 and 6.2. The amounts represent
salaries and bonuses (including superannuation) and fees paid to directors.
Appendix 5B expenditure disclosure
As at 31 December 2024, the Company had cash resources of A$11.8m and no debt.
Exploration, feasibility, and development activities cash expenditure on the
Project during the quarter was A$6.2m. Piedmont Lithium Inc. funded A$0.7m 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"): 31 December 2024
Consolidated statement of cash flows Current quarter Year to date (6 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 (300) (638)
(e) administration and corporate costs (854) (2,492)
1.3 Dividends received (see note 3) - -
1.4 Interest received 8 8
1.5 Interest and other costs of finance paid (6) (8)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other Income - -
1.9 Net cash from / (used in) operating activities (1,152) (3,130)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (19) (101)
(d) exploration, feasibility, and development (6,172) (12,359)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets 1 1
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 746 3,843
2.6 Other - Contribution from lessor for Lease Fit Out - 182
2.7 Net cash from / (used in) investing activities (5,444) (8,434)
3. Cash flows from financing activities 10,269 10,269
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 (217) (217)
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 10,052 10,052
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 7,471 12,679
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,152) (3,130)
4.3 Net cash from / (used in) investing activities (item 2.7 above) (5,444) (8,434)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 10,052 10,052
4.5 Effect of movement in exchange rates on cash held 883 643
4.6 Cash and cash equivalents at end of period 11,810 11,810
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 11,796 7,464
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash 14 7
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 11,810 7,471
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 214
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 371
in item 2
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) (1,152)
8.2 (Payments for exploration & evaluation classified as investing activities) (6,172)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (7,324)
8.4 Cash and cash equivalents at quarter end (item 4.6) 11,810
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 11,810
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.6
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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:
· Atlantic Lithium Ltd is funded under a co-development agreement
with Piedmont Lithium Inc. Piedmont continues to contribute on a monthly basis
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.
· The Company has implemented further cost-cutting
measures during the December 2024 quarter. Additionally, the Company will
continue to closely monitor its available cash and adjusting operating
expenditure as required.
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). The Company has
its remaining LR7.1 capacity if required. The Company has a strong track
record of being able to raise funds if required.
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 January 2025
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.
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.(1 2)
The Project was awarded a Mining Lease in October 2023, an Environmental
Protection Agency ("EPA") Permit in September 2024, and a Mine Operating
Permit in October 2024 and is being developed under an earn-in agreement with
Piedmont Lithium Inc.
The Ewoyaa Mineral Resource Estimate (JORC) totals 36.8Mt at 1.24% Li(2)O and
includes 3.7Mt at 1.37% Li₂O in the Measured category, 26.1Mt at 1.24%
Li₂O in the Indicated category and 7.0Mt at 1.15% Li₂O in the Inferred
category.(1) Ore Reserves (Probable) of 25.6Mt at 1.22% Li(2)O have been
reported for the Project.(1)
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 report that relates to Exploration Results, 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 report
relating to the Mineral Resource Estimate ("MRE") of 36.8Mt at 1.24% Li₂O
for the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") is extracted from
the Company's announcement entitled "New Dog-Leg Target Delivers Increase to
Ewoyaa MRE", dated 30 July 2024. The MRE includes a total of 3.7Mt at 1.37%
Li₂O in the Measured category, 26.1Mt at 1.24% Li₂O in the Indicated
category and 7.0Mt at 1.15% Li₂O in the Inferred category. The information
in this report relating to the Feldspar Mineral Resource Estimate ("Feldspar
MRE") of 36.8Mt at 41.9% feldspar for the Project is extracted from the
Company's announcement entitled "Updated Feldspar Resource Estimate", dated 30
January 2025. The MRE includes a total of 3.7Mt at 40.2% feldspar in the
Measured category, 26.1Mt at 42.1% feldspar in the Indicated category and
7.0Mt at 42.4% feldspar in the Inferred category. The information in this
report relating to Ore Reserves (Probable) of 25.6Mt at 1.22% Li(2)O and the
Production Target of 3.6Mt of spodumene concentrate over a 12-year mine life
is extracted from the Company's announcement entitled "Ewoyaa Lithium Project
Definitive Feasibility Study", dated 29 June 2023. The Company confirms, in
the case of Mineral Resources, Ore Reserves and Production Targets, that all
material assumptions and technical parameters underpinning the estimates
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 in the announcement entitled, "Mining Lease Granted for Ewoyaa
Lithium Project". The Company is not aware of any new information or data that
materially affects the information included in this report or the
announcements dated 30 January 2025, 30 July 2024, 20 October 2023 and 29 June
2023, which are available at www.atlanticlithium.com.au
(http://www.atlanticlithium.com.au) .
(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 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 this report of the matters based upon the information in
the form and context in which it appears.
Information in this report relating to Ore Reserves was compiled by Mr Harry
Warries. All stated Ore Reserves are completely included within the quoted
Mineral Resources and are quoted in dry tonnes. Mr Warries is a Fellow of the
Australasian Institute of Mining and Metallurgy and an employee of Mining
Focus Consultants Pty Ltd. He has sufficient experience, relevant to the style
of mineralisation and type of deposit under consideration and to the activity
he is undertaking, to qualify as a Competent Person as defined in the
'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of
December 2012 ("JORC Code") as prepared by the Joint Ore Reserves Committee of
the Australasian Institute of Mining and Metallurgy, the Australian Institute
of Geoscientists and the Minerals Council of Australia. Mr Warries gives
Atlantic Lithium Limited consent to use this reserve estimate in reports.
The Company confirms that the form and context in which the Competent Persons'
findings are presented have not been materially modified from the original
market announcement.
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