The Minerals Income Investment Fund of Ghana (MIIF) is set to invest $27.9 million to acquire a 6% interest in the Ewoyaa Lithium Project and an additional $5 million in Piedmont Lithium partner Atlantic Lithium Limited.
MIIF’s project-level investment is planned to flow directly towards Project development expenses, with MIIF additionally contributing 6% of ongoing exploration and development expenditures within Atlantic’s Ghanaian portfolio.
Piedmont holds a 9% stake in Atlantic. As part of its commitment to gain a 50% equity stake in Atlantic’s Ghanaian portfolio, the Company announced in August that it would acquire a 22.5% stake in Ewoyaa Lithium Project, subject to government approvals. Piedmont has pledged to fund the first $70 million of project capex and share additional capital expenses with Atlantic on an equal basis to obtain an additional 27.5% stake in Ewoyaa.
MIIF’s $27.9 million investment and 6% contribution to development costs will reduce Piedmont and Atlantic’s capital contributions for Ewoyaa construction. This will also reduce their effective Project interests to 47% each before the Ghanaian government’s free carried interest. Piedmont plans to fund its share through cash flow from its Quebec, Canada joint venture.
Piedmont will continue to purchase 50% of Ewoyaa’s lithium concentrate production on a life-of-mine basis, utilising a market-based pricing structure. This offtake is intended to serve as feedstock for Piedmont’s proposed 30,000-metric-tonne-per-year lithium hydroxide conversion facility in Tennessee.
Piedmont Lithium Chief Operating Officer and Atlantic Lithium Board Member Patrick Brindle said the investment deal is a clear expression of the Ghanaian government’s confidence in the Ewoyaa Lithium Project.
“The investment by MIIF and the significant endorsement this funding represents will further de-risk the Ewoyaa project. We believe MIIF’s investment is a validation of both the work completed to date by our partners and the commitment of the Ghanaian government to support diversified mining development as the Project advances toward mining lease approval expected later in 2023 and targeted first production in the second half of 2025. Ewoyaa is a core project for Piedmont Lithium, and we welcome MIIF’s support as an equity partner in this important development,” Brindle stated.
