Atlantic Lithium Completes A$10 Million Equity Placing to Propel Ewoyaa Project
ATLANTIC LITHIUM LIMITED (A11) Share Update October 2024 Friday 25th
Atlantic Lithium Secures A$10 Million for Ewoyaa Project
Atlantic Lithium Limited has successfully completed a significant equity placement, raising A$10 million to fund the development of its flagship Ewoyaa Lithium Project in Ghana.
Instant Summary:
- Atlantic Lithium raises A$10 million through equity placement.
- Assore International Holdings Limited subscribes for US$5 million.
- Funds to advance Ewoyaa Lithium Project towards Final Investment Decision.
- Shareholder approval required for certain participations at AGM.
Equity Placement Details
Atlantic Lithium Limited, a company focused on lithium exploration and development in Africa, has announced the successful completion of an equity placement, raising A$10 million. This funding will be used to advance the company's flagship Ewoyaa Lithium Project in Ghana towards a Final Investment Decision (FID). The placement was conducted at a price of A$0.23 per new share, resulting in the issuance of 43,478,261 new fully paid ordinary shares.
Assore International Holdings Limited, the largest shareholder of Atlantic Lithium, has conditionally subscribed for US$5 million worth of shares, equating to 32,775,013 new shares. Additionally, key company executives, including the Executive Chairman Neil Herbert, have also participated in the placement, subscribing for a total of 1,260,870 new shares.
Use of Funds
The proceeds from the equity placement will primarily be allocated to the Ewoyaa Lithium Project. The funds will support the optimization and technical refinement of the project's Definitive Feasibility Study, as well as activities related to permitting and operating requirements. This financial boost is expected to position Atlantic Lithium on a firm footing to achieve commercial production of spodumene in Ghana.
Shareholder Approval and Related Party Transactions
The participation of Assore and the company's directors in the equity placement is subject to shareholder approval at the upcoming Annual General Meeting (AGM). Assore's participation is considered a related party transaction due to its substantial shareholding in the company, and thus requires approval under ASX Listing Rules.
Following the completion of the placement, Assore's shareholding will increase to 30.56% of the company's issued share capital, assuming shareholder approval is obtained. The directors of Atlantic Lithium, excluding those participating in the placement, have deemed the terms of the participation fair and reasonable for shareholders.
The successful equity placement demonstrates strong investor confidence in the Ewoyaa Lithium Project, despite challenging market conditions for lithium companies. This funding is crucial for advancing the project towards production, potentially enhancing the company's market position and stock value.
Investor Reaction:
Analysts are likely to view the successful fundraising as a positive indicator of investor confidence in Atlantic Lithium's strategic direction. The substantial participation by Assore, a major shareholder, underscores strong support for the project.
Conclusion:
Investors should closely follow the developments of the Ewoyaa Lithium Project as it progresses towards a Final Investment Decision. The successful equity placement positions Atlantic Lithium well for future growth, making it a company to watch in the lithium sector.