GCIAtlantic Lithium reports key permitting milestones for Ewoyaa as project nears construction
() , an Africa-focused lithium explorer, issued a quarterly activities and cashflow report for Q2 ended June 30, 2024.
Atlantic continued to advance the permitting process for its flagship Ewoyaa lithium project in Ghana, achieving a number of milestones. The company submitted a draft Environment Impact Statement (EIS) to the Environmental Protection Agency (EPA), and successfully completed the final EPA public hearing in respect to the project.
Atlantic's entire share capital was admitted to the main market of the Ghana Stock Exchange, as agreed under the terms of the grant of the Ewoyaa mining lease. Post-period, the mining lease was submitted to parliament to undergo the standard ratification process.
In terms of exploration, reported high-grade results from Ewoyaa's newly identified Dog-Leg target, including 27m at 1.85% Li2O from 126m, and 15m at 1.08% Li2O from 126m. As a result, Ewoyaa's MRE was raised post-period to 36.8Mt at 1.24% Li2O. also commenced field work at its newly granted Senya Beraku prospecting licence in the east of its Cape Coast lithium portfolio in Ghana.
On the corporate front, appointed Minerals Income Investment Fund (MIIF) CEO Edward Nana Yaw Koranteng to its Board of Directors, in line with the completion of MIIF's US$5m investment in the company. also reported progress in its ongoing competitive offtake partnering process to secure funding for a portion of the remaining 50% available feedstock from Ewoyaa.
Cash at the end of Q2 was A$12.7m (£6.47m).
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Another positive quarterly update from Atlantic as its flagship Ewoyaa lithium project moves closer to shovel readiness. In a separate release today, reported an increase to Ewoyaa's mineral resource estimate (MRE) to 36.8Mt at 1.24% Li2O, following successful exploration of the newly identified Dog-Leg target. 81% of the resource is now in the higher-confidence Measured and Indicated categories.
The recent submission of the draft EIS to the EPA, and completion of the final EPA public hearing are significant permitting milestones, expected to be followed by parliamentary ratification of the mining lease in October, and grant of a mine operating permit. Overall, the permitting process is advancing rapidly and these marks are expected to be passed without delays. Commencement of construction is targeted for late 2024 and initial production for early 2025. Simultaneously, further targets are being identified in the newly secured Bewadze and Senya Beraku licences.
Interest in Ewoyaa lithium is high as positive results continue to come in and the project moves steadily toward production. Atlantic has received multiple offers from a range of industry players as part of its ongoing competitive offtake partnering process to secure funding for a portion of the remaining 50% available feedstock from Ewoyaa. Ewoyaa's development cost is estimated at US$185m. Atlantic's main partner on the project is US-based Piedmont Lithium who has committed US$70m and 50% thereafter of the total capex.
Additionally, Ghana's Mineral Income Investment Fund has agreed to invest US$32.9m (US$5m already invested), and the abovementioned offtake partnering process is due to complete later in 2024. As it stands, once in production Atlantic will own 40.5% of Ewoyaa, Piedmont will own an equal 40.5%, Ghana's Mineral Income Investment Fund will own 6%, and the government of Ghana will own 13%.
As part of the agreement with the government of Ghana, Atlantic has listed on the Ghana Stock Exchange under ticker ALLGH, making it the first lithium company to list on the GSE. The listing should help the company garner additional support and funding from local stakeholders and investors. With a robust cash position of A$12.7m at period-end, Atlantic remains well-funded to cover its share of development costs for the project.
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