Australian-based Atlantic Lithium Ltd., currently developing Ghana’s first lithium mine, has made a significant move toward raising capital from local equity investors.
- Australian-based Atlantic Lithium Ltd., currently developing Ghana’s first lithium mine, has made a significant move toward raising capital from local equity investors.
- The company has listed all its outstanding shares on the Ghana Stock Exchange, in addition to its existing listings on the Australian Securities Exchange and the London Stock Exchange’s AIM board.
- The company's Ewoyaa mine is projected to become the continent’s third-largest hard-rock lithium project.
The company has listed all its outstanding shares on the Ghana Stock Exchange, in addition to its existing listings on the Australian Securities Exchange and the London Stock Exchange’s AIM board, according to Abena Amoah, the managing director of the Accra-based bourse.
The shares opened at 4.40 cedis ($0.31) each at Monday’s launch in Accra, Bloomberg%20%2D%2D%20Australian%2Dbased,equity%20investors%20in%20the%20country.) reported. Although Atlantic Lithium Ltd., which has yet to begin production, listed the shares to comply with licensing requirements in the West African nation, it is not currently raising new capital in Ghana.
The company's Ewoyaa mine is projected to become the continent’s third-largest hard-rock lithium project.
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“We look forward to working with you on a follow-on offering where the company raises capital by selling shares to Ghanaian investors as you build out your mine,” Amoah told the company's representatives.
The next steps for Atlantic Lithium involve the ratification of its 15-year mining lease by Ghana’s parliament and a final investment decision, to break ground before the end of the year, according to Chief Executive Officer Keith Muller.
Ghana, already Africa’s largest gold producer, seeks to boost local ownership of its mineral resources, according to Land and Natural Resources Minister Samuel Jinapor.
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Last year, the country endorsed a green-minerals policy mandating miners of such resources, crucial for the global energy transition, to ensure a minimum 30% local stake in projects.
Lithium's growing demand
Presently, the global shift from fossil fuels to electric vehicles is fueling intense competition for securing lithium resources worldwide.
With a projected shortage anticipated to begin in 2025, there is an urgency to identify and secure new lithium supplies to meet the increasing demand for batteries in electric vehicles and renewable energy storage.
50% of the lithium extracted from the Ewoyaa mine is designated for a processing facility operated by Piedmont Lithium Ltd., the second-largest shareholder in Atlantic Lithium Ltd based in North Carolina.
Ghana’s sovereign minerals fund plans to pour $32.9 million into the Ewoyaa project, which could produce 65,000 metric tons of lithium carbonate, enough to power about 1.4 million Tesla Model 3s.
