GCIAtlantic Lithium partner Piedmont commits $17m to development of Ewoyaa project in Ghana
() , an Africa-focused lithium explorer, announced that its partner Piedmont Lithium has commited more funding to support the development of Atlantic's flagship Ewoyaa lithium project in Ghana.
As part of its existing agreement to earn a 50% interest in Atlantic's lithium projects in Ghana, Piedmont has exercised its option to acquire an initial 22.5% interest to fast-track the development of Ewoyaa. This is "Stage 2" of the agreement between the two companies, and requires Piedmont's sole funding of US$5m toward regional exploration and US$12m toward the delivery of a Pre-Feasibility Study.
To earn the full 50% (Stage 3), Piedmont has to sole fund the first US$70m and 50% of any additional expenditure towards the total US$185m development cost for the project as indicated in the Definitive Feasibility Study. All subsequent expenditure will be split 50:50 between Piedmont and Atlantic.
Stage 3 is intended to result in the completion of construction and initial production of spodumene concentrate at Ewoyaa, with production currently expected in 2025.
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Very positive news from Atlantic Lithium as US-based partner Piedmont commits to fund Atlantic's 18,500m exploration programme and Pre-Feasibility Study for Ewoyaa at a combined cost of US$17m, in exchange for a 22.5% stake in Atlantic's lithium projects in Ghana. Piedmont is expected to eventually contribute c. 70% of the project's total US$185m development cost as its stake increases to 50%. Ewoyaa aims to become Ghana's first lithium-producing mine with production on track for 2025.
The announcement reaffirms Piedmont's confidence in Ewoyaa and further validates the project's strong economics. Piedmont's commitment to Stage 2 funding comes after a very positive Definitive Feasibility Study (DSF), which quantified Ewoyaa's profitability potential.
Using conservative pricing, the DFS outlined 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn in revenues with a post-tax NPV8 of US$1.5bn and an IRR of 105%. Moreover, the study indicated payback within only 19 months, maintaining low capital intensity of US$64/t of annualised throughput.
The DFS also included modular DMS units and an increased throughput of 2.7Mtpa. Early revenue generated by the modular DMS units will reduce the peak funding requirement for the mine build, which is Atlantic's justification for choosing the technology.
Stage 2 of Ewoyaa's development will also incorporate a feldspar circuit. Feldspar is a by-product of the DMS process that Atlantic intends to supply to the Ghanaian ceramics market. An MOU was recently signed with the University of Mines and Technology (UMaT) to conduct a Definitive Feasibility Study aiming to evaluate the potential for producing feldspar, quartz, and muscovite as by-products of spodumene production at Ewoyaa.
Feldspar production should strengthen the project's ESG credentials, helping Atlantic maintain the support of the Ghanaian mining authorities after the introduction of the country's Green Minerals Policy last week. Atlantic said it has been in regular discussions with Ghana's Minerals Commission regarding the establishment of a framework that is attractive for mining companies while delivering maximum value to Ghana, and that the award of a mining license is on track as the country seeks to become Africa's first lithium-producing nation.
shares rose 4.20% after today's announcement.
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