Atlantic Lithium Raises £28m to Advance Ewoyaa Amid Market Challenges
Atlantic Lithium has locked in up to £28 million in funding from Long State Investments to advance its Ewoyaa Lithium Project in Ghana, navigating market challenges and permitting delays with financial flexibility.
- Binding agreements with Long State Investments for £28m funding
- Initial £2m share placement plus £20m committed equity facility
- Funding supports advancement of Ewoyaa Lithium Project in Ghana
- Shareholder approval sought at October Extraordinary General Meeting
- Long State to become strategic shareholder, minimizing dilution
Strategic Funding Secured Amid Market Headwinds
Atlantic Lithium Limited has taken a significant step forward by entering binding financing agreements with Long State Investments, securing up to £28 million over the next two years. This capital injection is designed to support the development of the Ewoyaa Lithium Project, poised to become Ghana's first lithium-producing mine. The funding package includes an immediate £2 million share placement and a committed equity facility of up to £20 million, subject to shareholder approval.
Flexible Capital Structure to Minimize Dilution
The agreements provide Atlantic Lithium with a flexible and controlled approach to raising capital. The initial share placement will issue approximately 24.8 million shares at £0.081 each, with subsequent placements available under defined terms. The committed equity facility allows the company to draw down funds in tranches over 24 months at prices set by the company, helping to mitigate shareholder dilution, a key concern in the current subdued lithium market.
Navigating Regulatory and Market Challenges
While the company has secured all necessary regulatory approvals, it awaits the final ratification of the Mining Lease by Ghana’s parliament, a critical milestone for project advancement. In response to ongoing delays and challenging lithium prices, Atlantic Lithium has implemented cash conservation measures, successfully reducing quarterly cash outflows from AUD 8.2 million to AUD 3.8 million over fiscal 2025.
Strategic Partnership with Long State Investments
Long State Investments, a global growth-focused investor, will become a key strategic shareholder. Their commitment signals strong confidence in Atlantic Lithium’s management and project potential. Both parties emphasize the high-quality nature of the Ewoyaa asset and its strategic importance in the evolving lithium market. The partnership aims to deliver significant value as the project moves toward construction and production.
Next Steps and Shareholder Engagement
Atlantic Lithium plans to convene an Extraordinary General Meeting in October 2025 to seek shareholder approval for the equity facility and associated warrants issuance. The company’s largest shareholder, Assore International Holdings, has indicated support for the resolutions. Market participants will be watching closely for the outcome, which will influence the company’s ability to access the committed funds and progress the Ewoyaa project.
Bottom Line?
Atlantic Lithium’s new funding framework positions it to weather current market pressures and regulatory delays, but the timing of mining lease ratification remains a pivotal factor.
Questions in the middle?
- When will Ghana’s parliament ratify the Ewoyaa Mining Lease to unlock project funding?
- How will the company balance future capital raises with shareholder dilution concerns?
- What impact will lithium market conditions have on Atlantic Lithium’s drawdown strategy?
