Atlantic Lithium reports A$7.5 million cash reserve

Atlantic Lithium Limited has released its Quarterly Activities and Cash Flow Report for the period ending 30 September 2024.

Reporting a cash reserve of AUD 7.5 million, the company continues to make strides in advancing the Ewoyaa Lithium Project in Ghana, which is projected to become the country’s inaugural lithium mine.

Neil Herbert, Executive Chairman of Atlantic Lithium, commented on the company’s progress, stating, “important steps have been made over recent months in line with our efforts to advance Ewoyaa towards full permitting.” 

He noted that critical approvals, including the Environmental Protection Agency (EPA) permit and the Mine Operating Permit, have been obtained, underscoring the support from the Minerals Commission, EPA, and local stakeholders.

“These are major de-risking milestones for the Project,” he added.

The company’s flagship Ewoyaa Lithium Project in Ghana has reached significant development milestones.

Atlantic Lithium noted that it has received the final Mine Operating Permit, marking a major regulatory milestone required for the project’s construction.

Additionally, the Environmental Protection Agency (EPA) has granted an environmental permit, further securing Ewoyaa’s compliance with Ghana’s environmental regulations.

Key to the project’s forward momentum, the Ewoyaa Mining Lease has now been submitted to Ghana’s Parliament for the ratification process. The recent issuance of a Land Use Certificate, approving rezoning of the Project’s mining area, represents another pivotal step towards construction.

“This progress affirms our goal of transforming Ewoyaa into a functioning lithium mine, creating value for both Ghana and our shareholders. We are also pleased to have reported an increase to the Ewoyaa Mineral Resource to 36.8Mt at 1.24% Li2O1 during the period. Despite the drilling programme being focused on supporting our mine build activities, we identified the Dog- Leg target, which contributed an additional circa 891,000 tonnes to the enlarged Resource1” Neil Herbert, Executive Chairman of Atlantic Lithium noted.

To optimize project development, Atlantic Lithium revealed that it has completed the Front-End Engineering Design (FEED) for the Project. This package, undertaken in collaboration with DRA Projects, will enhance the efficiency of project construction and operations planning.

In addition to its efforts in Ghana, Atlantic Lithium has been expanding its exploration footprint across West Africa. The company recently completed baseline soil and stream sediment sampling on its Rubino and Agboville exploration licenses in Côte d’Ivoire.

Further geochemical sampling was conducted at the Senya Beraku prospecting license, located in the eastern portion of the Cape Coast Lithium Portfolio in Ghana. These exploration efforts will contribute valuable data, potentially unveiling new lithium-rich areas for future development.

Despite the progress, Atlantic Lithium is contending with delays in the parliamentary ratification of the Ewoyaa Mining Lease, which is impacting the Final Investment Decision (FID) timeline.

“The delay in ratification has impacted the offtake process and MIIF’s investment already, forcing us to make cuts across various non-essential departments. Nevertheless, we remain confident in our ability to drive the Project through these headwinds towards construction and operation.”

The ratification by Ghana’s Parliament remains a decisive factor in the project’s timeline, which Atlantic Lithium anticipates will unlock significant development opportunities.

Herbert also noted the broader implications of the parliamentary process, which is currently in the public domain.

“We appreciate shareholders’ patience as these developments unfold,” he said, emphasizing the company’s readiness for various potential outcomes.