Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) Inc has opted to offload 24.3 million shares in Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) to its largest shareholder, Assore International Holdings, in return for US$7.8 million in consideration.
The shares represent 3.9% of Atlantic’s total shares – following the transaction, Assore will own about 28.4% of Atlantic’s shares, while PLL will retain 32.7 million shares for a 5.2% ownership stake in the company.
Bolstering cash balance
"We finished 2023 in a strong position with approximately US$72 million in cash and US$47.4 million in marketable securities as of market close on January 17," said Piedmont Lithium (ASX:PLL, OTC:PLLTL) president and CEO Keith Phillips.
“We have always viewed our Atlantic shares as a potential source of capital and are pleased to further bolster our cash balance through this agreement.
“"We remain confident about the potential Of Ewoyaa as a logistically advantaged, low-cost producer of spodumene concentrate, but are taking a disciplined approach to deploying capital in the current lithium price environment and positioning ourselves for the recovery we anticipate in the lithium market."
Piedmont says the sale has no impact on its joint venture, earn-in, or offtake position with Atlantic Lithium, or the Ewoyaa Project.