A$7 Million Equity Placing to Contribute to the Funding of the Ewoyaa Lithium Project

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce the launch of an institutional placement ("Equity Placing") of new fully paid ordinary shares of no par value each in the Company (“New Shares”) at an offer price of A$0.44 (equivalent to 23.35 pence) per New Share (“Issue Price”).

Highlights of the Equity Placing

• The Equity Placing will be undertaken by an institutional placement of New Shares to raise approximately A$7.0 million (£3.7 million), utilising the Company’s existing share authorities, launching today. As part of the Equity Placing, the Company reserves the ability to accept oversubscriptions for up to A$2.0 million (£1.0 million).
• Proceeds from the Equity Placing will be used to contribute to the funding of the Company’s flagship Ewoyaa Lithium Project in Ghana (the “Project”) and provide additional working capital for the Company.
• The Equity Placing will be undertaken at a fixed issue price of A$0.44 (equivalent to 23.35 pence) per New Share, which, as at the last trading day of 14 December 2023 on the ASX, represents a:
  • 10.2% discount to the last closing price of A$0.490; and
  • 11.9% discount to the 5-day volume weight average price of A$0.499.
• Canaccord Genuity (Australia) Limited has been appointed as Lead Manager (“Lead Manager”) in connection with the Equity Placing. Wilsons Advisory & Stockbroking is acting as Co-Manager (“Co-Manager”).

Proposed Use of Proceeds

• Mining Lease requirements
  • Expenditure associated with the Feldspar Definitive Feasibility Study;
  • Downstream Conversion Study to determine viability of downstream lithium conversion in Ghana and related factors required;
  • Listing by introduction on the Ghana Stock Exchange.
• Project Expenditure
  • EPA permitting process, land acquisition, relocation of powerline and engineering works;
  • Atlantic Lithium’s share of the Project’s overall development expenditure is approximately US$38 million, which is expected to be fully funded through (i) this Equity Placing (once completed), (ii) the completion of the agreed, non-binding investment in the Company from the Minerals Income Investment Fund of Ghana (“MIIF”) and (iii) the ongoing off-take financing process, due to complete in Q1 2024.
  • Exploration
    • Additional extensional drilling announced over and above the ongoing 2023 drilling programme.
  • Working capital
    • Working capital to ramp up the operational readiness team, relevant production processes and systems and associated costs.

Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:

“Under Ewoyaa’s current funding arrangements, which comprise Piedmont’s staged earn-in agreement, the agreed, non-binding Heads of Terms with the Minerals Income Investment Fund of Ghana for its investment in the Company and the process that is underway to secure a partner for a portion of the available off-take, we are in an excellent position to fully fund the Company’s share of the development expenditure for the Project.

“While we await the completion and receipt of the funds from MIIF’s investment, expected in Q1 2024, and the completion of the offiake process in late Q1 2024, we are undertaking this institutional placing in order to strengthen the Company’s cash balance, notably in light of recent takeover offers from the Company’s largest shareholder, Assore, and to ensure the advancement of Project in line with the current development schedule.

“Funds will be allocated towards advancing the activities agreed under the grant of the Mining Lease and for further drilling following the report of a 106m continuous pegmatite interval and broad intersections of visible spodumene outside of the current MRE. This drilling will contribute to the Company delivering an upgraded Mineral Resource Estimate for the Project in Q3 2024.

“We look forward to the completion of the placing, which we believe represents a major milestone towards fully de- risking the funding of the Project.”

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