Atlantic Lithium within ‘touching distance’ of building Ghana’s first lithium mine

Atlantic Lithium (AIM: ALL; ASX: A11) reported a $12.4 million loss for the year ending June 2024, up slightly from the previous year’s loss of $11.5 million, as the company moved closer to the start of construction at its Ewoyaa project in Ghana, which will be the West African country’s first lithium mine.

The junior hopes to break ground at the project, which will also be its first mine, before the end of the year. The project is being advanced under an agreement with Piedmont Lithium (NASDAQ: PLL; ASX: PLL). The U.S.-based miner is expected to fund close to 70% of the US$185 million development costs outlined in a 2023 feasibility study.

Key achievements during the fiscal year included securing a 15-year mining permit for Ewoyaa, which is now waiting to be ratified by the country’s parliament. Atlantic also received an environmental licence for the project last week.

The company also concluded a flotation study that confirmed the viability of a downstream flotation circuit at the site, which could add further value to the operation, according to Atlantic Lithium

Executive chairman Neil Herbert hailed the “significant progress” made in the past year as the company transitions to a mine developer and operator. He said that securing the mining lease was a “major de-risking milestone” for advancing the project, which he describes as a landmark achievement for both the company and Ghana.

The executive added that the company has fulfilled the key terms of the lease and now expects the ratification from Ghana’s parliament.

“We now find ourselves within touching distance of achieving full permitting and shovel readiness at Ewoyaa,” Herbert said.

Half of the lithium produced at Ewoyaa will be sent to a Piedmont refinery. Piedmont is the Australian firm’s second-largest shareholder and has agreed to provide most of the funds for building the mine. It currently owns a 22.5% stake in Atlantic’s lithium projects in Ghana, including Ewoyaa, and has an option to earn 50%.

Atlantic Lithium aims to produce a total of 3.6 million tonnes of spodumene concentrate, or 350,000 tonnes annually, over 12 years from the site. That would make it the world’s 10th-biggest lithium project, according to the company.