20th Oct 2023 08:25
(Alliance News) - Atlantic Lithium Ltd on Friday said it received a historic mining lease for lithium in Ghana.
The Sydney-based Africa-focused lithium exploration and development company said this is the first-ever mining lease for lithium issued by the West African country.
The approval, issued by Ghana's Ministry of Lands & Natural Resources, is for the company's flagship Ewoyaa lithium project. It enables the advancement of the project towards commercial production.
Atlantic Lithium has the right to carry out mining and commercial production activities over lease area for an initial 15-year period.
The company expects Ewoyaa to become one of the top 10 largest spodumene concentrate producers in the world.
Using a discount rate of 8%, the company anticipates a post-tax net present value of USD1.3 billion, with free cash flow of USD2.1 billion from life of mine revenue of USD6.6 billion.
Executive Chair Neil Herbert said: "As the first to be granted for lithium in the country, the award of the mining lease for the Ewoyaa lithium project is auspicious for both Ghana and Atlantic Lithium. It serves as Ghana's statement of intent to establish itself as a leading hub in Africa in the electric vehicle supply chain through the long-term production of lithium, with Atlantic Lithium as its partner of choice in this objective."
He added: "With our sights set on first production, work is now well underway to prepare Ewoyaa for shovel readiness. Meanwhile, we continue to de-risk and enhance the value of the Project through further exploration. We look forward to sharing our progress on these activities in due course."
Atlantic Lithium shares rose 5.3% to 27.80 pence each on Friday morning in London.
By Tom Budszus, Alliance News reporter
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