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Completion of US$5M MIIF Subscription

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce that, in line with the non-binding Heads of Terms (“Strategic Investment”) announced on 8 September 2023, the Minerals Income Investment Fund of Ghana (“MIIF”) has completed a subscription for 19,245,574 Atlantic Lithium shares (“Subscription”) at a price of US$0.2598 (A$0.39 / £0.20) per share (“Subscription Shares”), for a value of US$5 million (A$7.60m / £3.93m).

Highlights

Atlantic Lithium welcomes Ghana’s mineral sovereign wealth fund, MIIF, as a new major, strategic shareholder and funding partner, demonstrating the Ghana government’s significant support for the advancement of the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”).MIIF’s US$5m Subscription forms part of its agreed total US$32.9 million Strategic Investment in the Company and its Ghanaian subsidiaries to expedite the development of the Project and the broader Cape Coast Lithium Portfolio in Ghana (“Ghana Portfolio”) towards production.Subscription Shares to be held in escrow, equating to 3% of the total issued share capital of the Company.Under the agreed terms of the Subscription, MIIF is entitled to nominate one person to the Company’s Board of Directors and will be granted 9,622,787 warrants at a price of US$0.3637.In addition to the US$5m Subscription, and subject to the Company reaching a binding agreement with MIIF for its proposed investment in the Ghana Portfolio, MIIF to invest a further US$27.9m in the Company’s Ghanaian subsidiaries to acquire a 6% contributing interest in the Company’s Ghana Portfolio, inclusive of the Project, expected to complete in the coming months.MIIF’s decision to invest in the Company serves as an indication of the country’s long-term green minerals ambitions with Atlantic Lithium as the government’s ‘partner of choice’, as well as an endorsement of the Company’s intrinsic value as an investment opportunity.

Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:

“I am delighted to welcome Ghana’s sovereign wealth fund, MIIF, onto the Atlantic Lithium register as a highly valued shareholder and partner. MIIF’s Strategic Investment recognises the considerable, long-lasting benefits that the Company, through lithium production at Ewoyaa and the broader Cape Coast Lithium Portfolio, can bring to Ghana, while also being indicative of Atlantic Lithium’s significant value upside to existing and prospective investors.“

As we near the commencement of construction at Ewoyaa later this year, we expect to benefit greatly from MIIF’s support. Notably, this includes MIIF’s contributing interest towards the Project’s development expenditure, which further de-risks the success of the Project.

“We look forward to completing the deal and working alongside MIIF as a partner in achieving Ghana’s lithium production ambitions.”

Commenting, Edward Nana Yaw Koranteng, Chief Executive Officer of the Minerals Income Investment Fund, said:

“MIIF has been at the forefront of leading co-investment opportunities within the mining sector in Ghana. This provides a de-risking mechanism for global investors such as Atlantic Lithium and cements Ghana as an investment destination of choice in Africa. Our strategy is to invest across the entire mining value chain of every mineral, with lithium not being an exception. In this vein, MIIF is prepared to invest in line with the Government of Ghana’s energy transition plan, including becoming the EV hub for Africa.

“Atlantic Lithium’s Ewoyaa Lithium Project has vast prospects with comparatively minimal initial capital requirements. The Project’s proximity to the Takoradi port and other infrastructure improves its profitability profile. We look forward to working with all parties involved to deliver Ghana’s first lithium mine, cementing the country’s position as a leading global minerals destination.”

Click here for the full ASX Release

This post appeared first on investingnews.com
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