Atlantic Lithium Secures up to $37.5m Funding for Ewoyaa Project
Atlantic Lithium has secured binding financing agreements worth up to £28m ($37.5m) with Long State Investments, bolstering its balance sheet as the Africa-focused explorer moves closer to developing Ghana’s first lithium mine.
The AIM- and ASX-listed company said on Thursday it had struck a two-pronged deal with the Hong Kong-based investment group, comprising an £8m share placement and a £20m committed equity facility. The funding, spread over 24 months, will provide both immediate capital and longer-term access to liquidity as the group navigates a subdued lithium market.
The initial tranche of the share placement will raise £2m through the issue of 24.8m shares, with three further tranches of £2m each available at the company’s discretion. The £20m equity facility, which requires shareholder approval at an extraordinary general meeting in October, will allow Atlantic to issue new shares in stages over two years.
The company is awaiting parliamentary ratification of its mining lease for the flagship Ewoyaa project — the final step in Ghana’s permitting process — before advancing to construction. Ratification has been delayed, forcing the miner to implement cash conservation measures that cut quarterly outflows by more than half to AUD 3.8m in the final quarter of FY25.
Keith Muller, Atlantic Lithium’s chief executive, said the agreements came at “such a key juncture in the project’s development”, adding that the terms offered “maximum control” while minimising shareholder dilution.
Long State, which focuses on growth-oriented investments, will become a strategic shareholder. Its managing director, Philip Ho, said Ewoyaa was a “strategically significant asset” with the potential to transform Ghana into a lithium producer and offer investors exposure to “improving market dynamics”.
Lithium prices have tumbled over the past year amid weaker electric vehicle demand growth and swelling supply from Australia and China. Analysts suggest that while near-term pricing pressure remains, developers with high-quality deposits and secure financing are best positioned to benefit when market conditions tighten.
Assore International Holdings, Atlantic’s largest shareholder, has already pledged to support the funding resolutions at the upcoming meeting.
