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- Atlantic Lithium (A11) agrees to a non-binding deal with the MIIF of Ghana to receive a $51.4 million investment
- The company is on its way to delivering Ghana’s first lithium mine into commercialisation
- MIIF’s proposed investment will support A11’s flagship Ewoyaa project
- The investment also showcases Ghana as a highly attractive mining jurisdiction and a prominent player in the decarbonisation thematic
- A11 shares are up 4.71 per cent, trading at 44.5 cents at 2:56 pm AEST
Atlantic Lithium (A11) has signed a non-binding heads-of-terms deal with the Minerals Income Investment Fund (MIIF) of Ghana to receive a US$32.9 million (A$51.4 million) investment.
The African-focused lithium explorer aims to deliver Ghana’s first lithium mine into commercialisation, and MIIF’s proposed investment will support the development of its flagship Ewoyaa project.
MIIF will invest US$27.9 million (A$43.6 million) in Atlantic’s Ghanaian subsidiaries to acquire a six per cent stake in the portfolio.
Furthermore, the Ghana fund will subscribe to more than 19 million shares in the company at just over 40 cents apiece to incur $5 million shares to be held in escrow, for an extra 3.05 per cent stake in A11.
“MIIF’s investment, at both the listed company level and via Atlantic Lithium’s Ghanaian subsidiaries, represents a huge endorsement of the company’s work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate,” A11 Executive Chair Neil Herbert said.
“Having MIIF as a shareholder not only de-risks the project from a funding perspective but, equally importantly, further aligns the company with the best interests of its Ghanaian stakeholders, who we are proud to represent.”
Under the terms of the investment, MIIF will have the power to nominate one person to each of the boards of the company’s Ghanaian subsidiaries and be invited to participate in the approaching competitive process for Ewoyaa’s commercial offtake.
Additionally, the fund will be granted one warrant for every two Atlantic Lithium shares subscribed at a 40 per cent premium to the subscription price.
The investment showcases Ghana as a highly attractive mining jurisdiction and a prominent player in the decarbonisation thematic.
A11 shares were up 4.71 per cent, trading at 44.5 cents at 2:56 pm AEST.
