Piedmont Lithium has unveiled plans to increase its stake in Atlantic Lithium Limited’s Ewoyaa Lithium Project as part of a phased investment agreement to acquire a 50% equity interest in Atlantic Lithium’s Ghanaian lithium portfolio.
Piedmont has exercised its option to acquire a 22.5% stake in the Ewoyaa Lithium Project under the provisions of the project agreement with Atlantic Lithium, having funded the completion of the Project’s definitive feasibility study (DFS). Piedmont also intends to provide an extra $70 million to Ewoyaa development capital to acquire an additional 27.5% stake in the Project. Piedmont plans to split the remaining Project capital costs equally with Atlantic Lithium, for a total Piedmont contribution of roughly $128 million towards the total expected Project capital expenditures of $185 million.
The Company’s further funding is contingent on the Project receiving final government and regulatory approvals. Piedmont anticipates that profits from the sale of lithium concentrate from its offtake agreement with North American Lithium (NAL) will be sufficient to cover its contributions to Project development.
The Company is entitled to acquire 50% of Ewoyaa’s lithium concentrate production on a market-based pricing basis throughout the life of the mine. This offtake is intended to serve as feedstock for the Company’s projected 30,000-metric-tonne-per-year lithium hydroxide conversion facility in Tennessee.
Piedmont President and CEO Keith Phillips stated that the investment for Ewoyaa Lithium Project is part of the company’s plan to deliver critical lithium resources to electric vehicle and battery manufacturers in the United States.
“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,” Phillips said.
