Neil Herbert, Executive Chairman of Atlantic Lithium commenting on Ghana's Minerals Income Investment Fund agreeing to invest US$32.9 million in the company to support the development of the Ewoyaa Lithium Project says this investment, “demonstrates the Government of Ghana's conviction in the Project”
Highlights
· Minerals Income Investment Fund of Ghana to invest a total of US$32.9m (A$51.4m / £26.3m) in the Company and its Ghanaian subsidiaries to support the development of the Ewoyaa Lithium Project and broader Cape Coast Lithium Portfolio in Ghana.
· MIIF to invest US$27.9m (A$43.6m / £22.3m) in the Company's Ghanaian subsidiaries to acquire a 6% contributing interest in the Company's Ghana Portfolio, inclusive of the Ewoyaa Lithium Project. The contributing interest will take the form of funding of development, exploration and studies expenditure.
· MIIF to subscribe for 19,245,574 Atlantic Lithium shares ("Subscription") at a price of US$0.2598 (A$0.41 / £0.21) per share, for a value of US$5m (A$7.8m / £4m), to be held in escrow, equating to 3.05% of the total issued share capital of the Company.
· Under the non-binding terms of the Strategic Investment, MIIF will be i) entitled to nominate one person to each of the boards of the Company's Ghanaian subsidiaries ii) invited to participate in the near-term competitive process for Ewoyaa's available off-take and iii) granted one warrant for every two Atlantic Lithium shares subscribed for under the Subscription at a 40% premium to the Subscription price.
· MIIF's Strategic Investment further aligns the Company and its spodumene concentrate production ambitions at Ewoyaa and its Ghana portfolio with its Ghanaian shareholders.
· The Strategic Investment highlights the desirability of the Ewoyaa Lithium Project, derisks the success of the Project and sees MIIF contribute towards the development expenditure for the Project.
· The Strategic Investment is a major endorsement by an African sovereign wealth fund and spotlights Ghana as a highly attractive mining jurisdiction and a pioneer in the decarbonisation thematic.
Shareholders should note that, at this stage, the agreement is non-binding and, therefore, there can be no certainty that the proposed Strategic Investment by MIIF will be concluded or on what terms it might be concluded.