Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) said partner Piedmont Lithium (NASDAQ:PLL) (ASX:PLL, NASDAQ:PLL, XETRA:) has committed to supporting the development of the Ewoyaa project in Ghana to production.
In total, Ewoyaa will cost US$185 million to build and commission, according to the year’s definitive feasibility study (DFS).
So, in financial terms, this will mean Piedmont will pay solely for the first US$70 million of construction costs and 50% of the additional US$115 million.
Piedmont has also exercised an option to take a 22.5% in Ewoyaa and Atlantic’s other lithium projects in Ghana that it earned through funding exploration and the DFS.
That stake can rise to 50% after it completes all of its funding commitments.
Atlantic Lithium is responsible for the remainder of the costs of construction.
Production of spodumene concentrate at Ewoyaa will start in 2025 once licences and approvals are finalised.
Neil Herbert, Atlantic Lithium’s executive chairman, said: “Since our initial agreement in July 2021, Piedmont Lithium remained a highly supportive and collaborative partner.
"In line with the agreement, Piedmont is expected to contribute 70% of the project's total US$185 million development expenditure.
"We believe that this commitment to the next stage of development reflects Piedmont's strong belief in Ewoyaa, further de-risking the project and moving us ever closer to first spodumene concentrate production in Ghana.”
Piedmont’s chief executive Keith Phillips added: "We are pleased with the results of the Ewoyaa lithium project DFS and our election to earn our initial 22.5% interest in Atlantic Lithium's Ghanaian lithium project portfolio.”