Ghana’s Minerals Income Investment Fund (MIIF) is set to invest $32.9 million in ASX-listed Atlantic Lithium and its Ghana-based subsidiaries. This move is aimed at advancing the development of the Ewoyaa lithium project, a flagship venture of Atlantic Lithium.
According to reports by Mining Tech, the project covers an expansive 560 square kilometers, Ewoyaa is on track to become Ghana’s premier lithium-producing mine. It’s situated about 110 kilometers from the Takoradi port and a mere 100 kilometers from the capital, Accra. Current evaluations show the project holds an estimated 35.3 million tonnes with a lithium oxide composition of 1.25%. The ore reserves are pegged at 25.6 million tonnes at 1.22% lithium oxide, with a conservative concentrate pricing set at $1,587 per tonne.
Of the total investment, $27.9 million will be channeled into securing a 6% stake in Atlantic Lithium’s Ghanaian operations for MIIF. This will further bolster the Ewoyaa project and enhance the broader Cape Coast lithium portfolio in Ghana.
Additionally, MIIF will acquire stakes in Atlantic Lithium subsidiaries: Barari DV Ghana, Green Metals Resources, Moda Minerals, and Joy Transporters. Collectively, these entities hold the country’s lithium rights.
The agreement also stipulates MIIF’s subscription to 19.24 million shares of Atlantic Lithium at roughly $0.26 each, summing up to $5 million. This will grant MIIF a 3.05% share in Atlantic Lithium. Moreover, MIIF has consented to retaining 6.5 million shares for two years post-issue, another 6.5 million for three years, and the final 6.2 million shares for four years.
Edward Nana Yaw Koranteng, CEO of MIIF, remarked on the significance of this venture. He noted that MIIF’s primary mission is to foster the growth of Ghana’s mining sector while offering investors a more secure avenue. He added, “This collaboration with Atlantic Lithium not only highlights our commitment but is also a pivotal step as our inaugural foray into the global lithium market. Ewoyaa, being a top-tier project, coupled with Atlantic Lithium’s broader ventures, promises immense potential.”
