As part of a staged investment agreement to earn a 50% equity interest in Atlantic Lithium’s Ghanaian lithium portfolio, Piedmont Lithium (NASDAQ:PLL) (ASX:PLL, NASDAQ:PLL, XETRA:) Ltd will increase its stake in Atlantic Lithium’s Ewoyaa Lithium Project.
Piedmont has exercised its option to acquire a 22.5% stake in Atlantic Lithium’s flagship project, having funded the completion of the project’s definitive feasibility study (DFS).
The latest move reflects Piedmont’s confidence in the development of its Ghana assets.
The Ewoyaa development furthers Piedmont’s strategy to secure feedstock for a planned Tennessee conversion plant.
In a further show of confidence Piedmont, which aims to become a leading global producer of lithium resources critical to the US electric vehicle supply chain ,also plans to provide a further $70 million toward Ewoyaa development capital to acquire an additional 27.5% interest in the Project.
The remaining Project capital costs will be shared equally with Atlantic Lithium for a total Piedmont commitment of approximately $128 million toward the total estimated $185 million Project capital costs.
Piedmont President and CEO Keith Phillips said, “We are pleased to help advance the progression of Ewoyaa as a key part of Piedmont Lithium’s global portfolio and the expected feedstock for our planned lithium hydroxide conversion facility in Tennessee.
“Our partners at Atlantic Lithium have made tremendous progress with positive Project economics recently published in a definitive feasibility study and minerals lease discussions that are progressing with Ghana’s Minerals Commission. We look forward to continuing our work with Atlantic Lithium to support the Project toward first production, currently targeted for 2025.
Funding subject to approval
Piedmont’s additional funding is subject to final government and regulatory approvals for the Project, however the company, the company anticipates financing its project contributions via the revenue generated from the lithium concentrate sales under its offtake agreement with North American Lithium.
The company has secured rights to acquire 50% of the lithium concentrate output from the Ewoyaa mine, based on current market pricing. This offtake is slated to serve as the primary feedstock for Piedmont’s proposed lithium hydroxide conversion facility in Tennessee, which has a projected capacity of 30,000 metric tons annually.
Piedmont is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America.
Its goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where we hold an economic interest.Projects include the Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium.