Atlantic Lithium Welcomes Piedmont-Sayona Merger as Boost for Ewoyaa Project
Atlantic Lithium Limited has expressed optimism about the proposed merger between Piedmont Lithium, its strategic funding partner for the Ewoyaa Lithium Project in Ghana, and North American lithium producer Sayona Mining.
The definitive agreement to combine the two companies under a new entity, MergeCo, was signed on November 19, 2024, with Sayona Mining slated to become the parent entity.
In discussions with Sayona CEO and Managing Director Lucas Dow, who is expected to lead MergeCo, Atlantic Lithium reported assurances of continued commitment to the development of the Ewoyaa Lithium Project.
“Following our discussions with Sayona CEO and MD Lucas Dow and his team, we wholeheartedly welcome the commitment from MergeCo towards the continued funding and development of the Company’s Ewoyaa Lithium Project towards production.
“With lithium prices expected to remain subdued over the short-medium term, we believe that Ewoyaa’s low-cost profile makes it a highly attractive asset in MergeCo’s enlarged portfolio. The Proposed Merger not only emphasizes the underlying belief in lithium’s role in the global energy transition but also significantly de-risks the funding of the Project, at an important juncture in its lifecycle.
“We look forward to working closely with the MergeCo team to drive Ewoyaa forward to become Ghana’s first lithium mine,” said Neil Herbert, Executive Chairman of Atlantic Lithium.
MergeCo will inherit Piedmont’s obligations under the existing co-funding agreement, which includes sole funding of $70 million toward project development expenses. Cost overruns will be equally shared between Atlantic Lithium and MergeCo.
Additionally, MergeCo will secure the right to an offtake agreement for 50% of the project’s spodumene concentrate production at market rates.
Global Reach and Operational Expertise
Atlantic Lithium highlighted the potential benefits of the merger, stating that MergeCo’s expanded global presence in North America and Australia could increase exposure to potential offtake partners and investors.
Furthermore, Atlantic Lithium staff will have opportunities to work at Sayona’s North American Lithium project in Canada, currently ramping up production. This exchange will allow Atlantic Lithium employees to gain valuable experience in large-scale mine development and lithium production, which could enhance the operations at Ewoyaa.
A Step Toward Risk Mitigation
The merger is seen as a critical step toward de-risking the funding and development of the Ewoyaa Project, which is positioned as a key part of Ghana’s push to establish itself as a leading lithium producer.
The project is expected to benefit significantly from MergeCo’s financial backing, technical expertise, and global network.
Atlantic Lithium, while optimistic about the proposed merger, noted that its completion is subject to shareholder approvals from both Sayona Mining and Piedmont Lithium. As such, no guarantees have been made about the finalization of the deal.
