Lease Delays and Funding Disputes Cloud Atlantic Lithium’s Ewoyaa Development Path
Atlantic Lithium advances negotiations for revised fiscal terms on its flagship Ewoyaa Mining Lease in Ghana, while reporting promising spodumene discoveries in Côte d'Ivoire and implementing significant cost-saving measures.
- Ongoing negotiations for revised fiscal terms of Ewoyaa Mining Lease reflecting current lithium prices
- Parliamentary ratification remains the final permitting hurdle for Ewoyaa project development
- Discovery of spodumene pegmatite at Agboville and Rubino licences in Côte d'Ivoire
- Corporate restructuring and salary reductions to conserve cash amid lithium market downturn
- Continued joint venture funding discussions with Piedmont Lithium and strategic investment talks with Ghana’s MIIF
Ewoyaa Mining Lease Negotiations Progress
Atlantic Lithium Limited is actively engaging with Ghanaian government stakeholders to secure revised fiscal terms for the Mining Lease of its Ewoyaa Lithium Project. These negotiations aim to align lease conditions with the current subdued lithium price environment, ensuring the project remains economically viable for shareholders and beneficial for Ghana. The company welcomed recent parliamentary comments confirming Cabinet’s authorization to negotiate and present revised terms for ratification, which remains the final regulatory step before project financing can proceed.
While optimistic about the lease ratification, Atlantic Lithium cautions that there is no certainty on the timing or outcome of parliamentary approval. This uncertainty has prompted the company to adopt a cautious approach to expenditure and project advancement.
Project Optimization and Cost Management
In parallel with lease negotiations, Atlantic Lithium is undertaking detailed cost-benefit analyses to optimize Ewoyaa’s design and engineering. The focus is on maintaining a technically robust, capital-efficient operation that can withstand prolonged periods of low lithium prices. These efforts aim to reduce operating costs and peak funding requirements, positioning the project to capitalize on future price recoveries.
Corporate cost-saving measures have been significant. Executive Chairman Neil Herbert stepped down to a non-executive role, with salary reductions implemented for key leadership and a rationalization of headcount. These moves, alongside halted exploration activities in Ghana and a focus on low-cost exploration in Côte d'Ivoire, reflect a strategic pivot to preserve cash, with the company holding A$5.4 million at quarter-end.
Exploration Success in Côte d'Ivoire
Atlantic Lithium reported encouraging early-stage exploration results from its 100%-owned Agboville and Rubino licences in Côte d'Ivoire. Geological mapping and rock-chip sampling have identified spodumene pegmatite occurrences, confirmed by assays showing elevated lithium concentrations up to 1.25% Li2O. Soil sampling delineated significant lithium anomalies over a 2.5km by 2.0km area at Rubino, with further sampling and mapping underway to define drill targets.
This exploration pipeline complements Ewoyaa and supports Atlantic Lithium’s long-term growth ambitions in West Africa, leveraging synergies from its Ghana operations.
Funding and Joint Venture Dynamics
Funding discussions continue with Piedmont Lithium Inc., the project’s joint venture partner, who is contractually obligated to sole fund the first US$70 million of development costs. However, a dispute has arisen over Piedmont’s funding obligations, with Piedmont currently contributing only 50% of claimed development costs. Atlantic Lithium is pursuing resolution through established contractual mechanisms, including arbitration if necessary.
Separately, the company is advancing a strategic investment with Ghana’s Minerals Income Investment Fund (MIIF), which plans to invest US$27.9 million for a 6% contributing interest in Atlantic Lithium’s Ghanaian subsidiaries. This investment follows MIIF’s earlier share subscription and is expected to strengthen local stakeholder alignment.
Outlook Amid Market Challenges
Despite the lithium market downturn and delays in lease ratification, Atlantic Lithium remains focused on advancing Ewoyaa towards a final investment decision. The company continues to engage with potential offtake partners, reflecting sustained demand for spodumene concentrate. Cost discipline and project optimization efforts aim to ensure resilience, while exploration success in Côte d'Ivoire offers promising avenues for future growth.
Bottom Line?
Atlantic Lithium’s next critical milestone hinges on Ghana’s parliamentary ratification of the Ewoyaa Mining Lease, a step that will unlock project financing and shape its path to production.
Questions in the middle?
- Will Ghana’s parliament ratify the revised fiscal terms for the Ewoyaa Mining Lease, and on what timeline?
- How will the funding dispute with Piedmont Lithium impact project development and timelines?
- What are the prospects and timelines for advancing exploration results in Côte d'Ivoire to drill targets and resource definition?
