Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) Inc has made great strides in becoming a supplier of lithium resources to the US electric vehicle supply chain with the grant of a mining lease for the Ewoyaa Lithium Project in Ghana, giving the company the right to mine for an initial 15-year period.
The project is held in a joint venture (JV) with Atlantic Lithium, a company Piedmont owns a 9% equity interest in.
The Minerals Income Investment Fund of Ghana, a state-owned investment fund, has also signalled its plan to invest US$27.9 million in Ewoyaa to acquire a 6% stake and an additional US$5 million in funding to PLL’s joint venture partner Atlantic Lithium to further development of the project.
Clear government support for Ewoyaa
"We are excited for our partner Atlantic Lithium, and we thank the project team and the Minerals Commission for their diligent efforts throughout the application process,” Piedmont Lithium (ASX:PLL, OTC:PLLTL) chief operating officer and Atlantic Lithium non-executive director Patrick Brindle said.
“The issuance of Ghana's first mining lease for lithium demonstrates clear support for the Ewoyaa Lithium Project and the opportunity it presents for the country and local communities.
"This milestone also reinforces Piedmont's plans to utilise Ewoyaa material as feedstock for the proposed 30,000 metric ton per year Tennessee-based lithium hydroxide conversion facility."
Piedmont recently exercised an option to acquire an initial 22.5% interest in Ewoyaa, subject to government approvals, with the opportunity to earn an additional 27.5% interest, bringing ownership of the project to 50% (exclusive of the expected MIIF investment and the Ghanaian government's carried interest.)
Piedmont also holds an offtake agreement to purchase 50% of lithium concentrate produced at Ewoyaa in a market-based pricing mechanism for the life of the mine.