Piedmont will cover 70% of the US$185 million expense in exchange for a 50% ownership stake.
Atlantic Lithium announced that its partner, Piedmont, is committed to backing the development of the Ewoyaa project in Ghana until its production phase.
According to this year’s definitive feasibility study (DFS), the total cost to construct and commission the Ewoyaa project is estimated at US$185 million.
Financially, this agreement entails that Piedmont is responsible for the initial US$70 million of the construction costs and will fund 50% of the remaining US$115 million.
Additionally, Piedmont has exercised an option to acquire a 22.5% stake in the Ewoyaa project and in Atlantic Lithium’s other Ghanaian lithium projects—a stake earned through its contributions to exploration funding and the DFS. This ownership interest can increase to 50% once Piedmont fulfils all of its funding commitments.
The remaining construction costs will be borne by Atlantic Lithium.
The production of spodumene concentrate at Ewoyaa is slated to commence in 2025, pending the finalization of licenses and approvals.
Neil Herbert, Executive Chairman of Atlantic Lithium, commented, “Since our initial agreement in July 2021, Piedmont Lithium has remained a steadfast, collaborative partner. In accordance with our Agreement, Piedmont is anticipated to cover 70% of the project’s total US$185 million development cost. We view this commitment as indicative of Piedmont’s strong confidence in Ewoyaa, serving to further de-risk the project and bringing us increasingly closer to initiating spodumene concentrate production in Ghana.”
Piedmont’s CEO, Keith Phillips, expressed satisfaction with the project’s progress, stating, “We are pleased with the results of the Ewoyaa lithium project DFS and with our decision to secure our initial 22.5% interest in Atlantic Lithium’s Ghanaian lithium project portfolio.”
