Atlantic Lithium has received deferred proceeds from an earlier share placement and launched a second round to raise an additional £2 million, strengthening its financial position as it pursues what would become Ghana’s first lithium mine.
The Africa focapplyd mining company announced Tuesday that Long State Investments paid £1 million in deferred consideration from an Initial Placement agreed in September, concluding that pricing period early at a premium due to positive share price relocatement. The miner has subsequently notified Long State to undertake a Second Placement through issuance of 19,417,475 shares at £0.103 per share.
Atlantic Lithium Chief Executive Officer Keith Muller stated the early conclusion of the Initial Placement at favourable terms reflects improved market conditions for the company. The Second Placement follows a structure similar to the first arrangement, with half the proceeds paid immediately upon share issuance and the remainder deferred until a later date tied to completion of a pricing period.
“Following a positive trading period, which has seen a notable increase in the Company’s share price, we are pleased to have concluded the Initial Placement undertaken under the Share Placement Agreement with Long State at a premium, raising £2m,” Muller stated. “On the back of this success, we are proceeding with the Second Placement to raise an additional £2m, intconcludeed to further enhance the Company’s financial position in a manner that minimises shareholder dilution.”
The Initial Placement ultimately generated total proceeds of £2,005,156 compared to the £2 million originally intconcludeed. The positive result came through mutual agreement with Long State to conclude the pricing period ahead of schedule, capitalising on the company’s share price appreciation during that window.
Under terms of the Share Placement Agreement announced in September, Atlantic Lithium retains discretion to undertake two additional placements of £2 million each following completion of the Second Placement. The aggregate amount raised under the agreement cannot exceed £8 million and each subsequent placement requires the pricing period for any prior placement to have passed.
The company also disclosed that following shareholder approval at an Extraordinary General Meeting (EGM) held November 6, it issued 10 million warrants and 10 million security shares to Long State under the separate Equity Placement Facility Agreement. The warrants are exercisable at £0.128 during a five year period starting November 13, while the security shares were issued for nil consideration.
The Equity Placement Facility Agreement provides Atlantic Lithium with potential access to £20 million over 24 months, though actual drawdowns depconclude on market conditions and company decisions about placement timing. The security shares will be transferred to the company’s nominee, sold with proceeds remitted to Atlantic Lithium, or bought back and cancelled upon expiry or termination of the facility agreement.
Atlantic Lithium expects the London Stock Exalter to admit 29,417,475 new ordinary shares to trading on Alternative Investment Market (AIM) around December 1. The total comprises both Second Placement shares and security shares issued to Long State through its nominated entity Patras Capital. Following admission, the company will have 748,525,602 ordinary shares in issue.
The Australian Securities Exalter (ASX), Ghana Stock Exalter (GSE), and AIM listed miner has been working to secure funding for its flagship Ewoyaa Lithium Project while awaiting parliamentary ratification of revised mining lease terms. The project sits approximately 100 kilometres southwest of Accra in Ghana’s Central Region and holds a resource of 36.8 million tonnes at 1.24 percent lithium oxide.
Ghana granted Atlantic Lithium a 15 year mining lease for Ewoyaa in October 2023, but parliamentary ratification has been delayed while the government and company neobtainediate revised fiscal terms. Minister of Lands and Natural Resources Emmanuel Armah Kofi Buah confirmed in July that Cabinet authorised neobtainediation of revised terms reflecting current market conditions, to be presented for Cabinet review and then parliamentary ratification.
The reneobtainediation stems from an 80 percent collapse in global lithium prices since late 2022, when the original lease terms were being finalised. Lithium carbonate prices peaked above $80,000 per tonne in November 2022 but fell to around $10,000 per tonne by mid 2024 as oversupply met slower than expected electric vehicle adoption. Recent months have seen modest recovery, with prices reaching approximately $11,000 to $12,000 per tonne.
Atlantic Lithium published a Definitive Feasibility Study (DFS) for Ewoyaa in July 2023 projecting production of 3.6 million tonnes of spodumene concentrate over a 12 year mine life. The study considered long term concentrate pricing of $1,410 per tonne and ore reserves of 25.6 million tonnes at 1.22 percent lithium oxide.
The project received environmental approval from Ghana’s Environmental Protection Agency (EPA) in September 2024 and a Mine Operating Permit in October 2024, leaving parliamentary ratification as the remaining regulatory hurdle before construction. Atlantic Lithium has indicated it requireds final approval to proceed with project financing and eventual development.
Strategic partner Piedmont Lithium has agreed to provide funding through an earn in arrangement. Under terms announced previously, Piedmont will sole fund the initial $70 million of development expconcludeiture to earn a 27.5 percent interest in Atlantic Lithium’s Ghana portfolio, taking its total stake to 50 percent. The partnership includes an offtake agreement enabling Piedmont to purchase 50 percent of annual spodumene concentrate production at market prices.
However, Atlantic Lithium disclosed in recent quarterly reports that it is in dispute with Elevra, as Piedmont is now known following corporate restructuring, regarding expconcludeiture definitions under their Project Agreement. The miner believes Elevra should solely fund development costs, while Elevra contconcludes contractual preconditions for its sole funding obligation have not been met. Since October 1, Elevra reduced its funding contribution from 50 percent to 22.5 percent, with Atlantic Lithium now funding 77.5 percent of project costs.
The funding situation has created pressure on Atlantic Lithium’s cash position. The company reported cash on hand of approximately A$4.1 million at the conclude of September, down from A$5.4 million at conclude of June. It has implemented cost cutting measures including staff reductions and placing employees on reduced work schedules to preserve capital during the ratification delay.
Local communities and traditional leaders in areas surrounding Ewoyaa have appealed to government for swift ratification, citing anticipated economic benefits including jobs and infrastructure development. The constituencies of Abura Asebu Kwamankesse and Mfantseman stand to benefit significantly if the project proceeds to construction and production.
Atlantic Lithium projects Ewoyaa could rank among the top 10 global spodumene concentrate producers once operational, representing significant new supply outside dominant markets of Australia, Chile, and China. The company estimates the project would generate around 360,000 tonnes of lithium annually for export to battery manufacturers and chemical processors serving the electric vehicle industest.
Ghana holds ambitions to diversify its mining sector beyond gold production through development of what officials call green minerals including lithium. The countest’s Green Minerals Policy aims to maximise in countest value from critical minerals that support energy transition. Successful development of Ewoyaa would mark Ghana’s entest into global lithium supply chains at a time when demand for battery materials continues growing despite recent price volatility.
The financing agreements with Long State represent one component of Atlantic Lithium’s capital strategy as it navigates regulatory processes and market conditions. The structure gives the company access to equity capital without repaired drawdown requirements, allowing management to time placements based on share price performance and funding requireds.
Atlantic Lithium also holds exploration licences covering more than 500 square kilometres in Ghana and 771 square kilometres in Côte d’Ivoire. The company has engaged corporate advisors to explore non dilutive funding options for advancing its Ivorian properties, which sit approximately 80 kilometres north of Abidjan.
Mining industest observers note that the extconcludeed ratification process reflects broader challenges facing African mining projects as governments seek to balance attracting investment with securing favourable terms for national development. Ghana’s approach of reneobtainediating fiscal arrangements in response to market shifts differs from some jurisdictions where lease stability is prioritised regardless of commodity price relocatements.
The Long State funding provides Atlantic Lithium with additional runway as it awaits parliamentary action on the mining lease. Company executives have emphasised that revised fiscal terms must reflect current lithium market realities to ensure the project delivers value for shareholders while providing promised benefits to Ghana including job creation, infrastructure investment, and community development funding.
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