Lithium exploration and development company Atlantic Lithium has welcomed Ghana’s sovereign minerals wealth fund the Minerals Income Investment Fund (MIIF) onto its shareholder register following the completion of the MIIF’s $5-million subscription.
This is part of the MIIF’s total $32.9-million strategic investment to support the development of the Ewoyaa lithium project and the broader Cape Coast lithium portfolio, in Ghana, towards production.
In line with the non-binding heads of terms announced on September 8, the MIIF completed a subscription for 19.2-million Atlantic Lithium shares valued at $5-million.
Under the agreed terms of the subscription, the MIIF is entitled to nominate one person to the Atlantic board.
In addition to the $5-million subscription, and subject to the company reaching a binding agreement with the MIIF for its proposed investment in the Ghana portfolio, the MIIF will invest a further $27.9-million in the company’s Ghanaian subsidiaries to acquire a 6% contributing interest in its Ghana portfolio, inclusive of the project, expected to complete in the coming months.
The MIIF’s strategic investment is expected to enhance the company’s cash balance and contribute towards project development expenditure, reducing its share of the total $185-million development expenditure, as indicated by the Ewoyaa definitive feasibility study, further de-risking the advancement of the project.
The MIIF’s decision to invest in the company serves as an indication of the country’s long-term green minerals ambitions with Atlantic Lithium as the government’s "partner of choice", as well as an endorsement of the company’s intrinsic value as an investment opportunity, Atlantic posits.
“I am delighted to welcome Ghana’s sovereign wealth fund, the MIIF, onto the Atlantic Lithium register as a highly valued shareholder and partner. The MIIF’s strategic investment recognises the considerable, long-lasting benefits that the company, through lithium production at Ewoyaa and the broader Cape Coast lithium portfolio, can bring to Ghana, while also being indicative of Atlantic’s significant value upside to existing and prospective investors.
“As we near the commencement of construction at Ewoyaa later this year, we expect to benefit greatly from MIIF’s support. Notably, this includes MIIF’s contributing interest towards the Project’s development expenditure, which further de-risks the success of the project,” says Atlantic executive chairperson Neil Herbert.
“The MIIF has been at the forefront of leading co-investment opportunities within the mining sector in Ghana. This provides a de-risking mechanism for global investors such as Atlantic Lithium and cements Ghana as an investment destination of choice in Africa.
“Our strategy is to invest across the entire mining value chain of every mineral, with lithium not being an exception. In this vein, the MIIF is prepared to invest in line with the government of Ghana’s energy transition plan, including becoming the electric vehicle hub for Africa,” MIIF CEO Edward Nana Yaw Koranteng says.
“Atlantic’s Ewoyaa lithium project has vast prospects with comparatively minimal initial capital requirements. The project’s proximity to the Takoradi port and other infrastructure improves its profitability profile. We look forward to working with all parties involved to deliver Ghana’s first lithium mine, cementing the country’s position as a leading global minerals destination,” he adds.
