Atlantic Lithium welcomes MergeCo's commitment to Ghana’s first lithium mine

Atlantic Lithium, a prominent exploration and development company listed on on the Ghana Stock Exchange has affirmed its confidence in the proposed merger between Piedmont Lithium Inc. and Sayona Mining, citing the move as a step for the advancement of its flagship Ewoyaa Lithium Project in Ghana.

The proposed merger, announced on November 19, 2024, aims to combine Piedmont Lithium and Sayona Mining into an entity referred to as "MergeCo," with Sayona as the ultimate parent company. 

MergeCo is expected to inherit Piedmont’s obligations towards Ewoyaa, which include a $70 million commitment to development costs under a co-funding agreement. This arrangement allows MergeCo to earn up to 50% of Atlantic Lithium’s interest in the project and secure an offtake agreement for 50% of spodumene concentrate at market rates.

Atlantic Lithium believes the merger will significantly de-risk the project by extending its global reach, particularly in North America and Australia. The merger also offers opportunities for collaboration and knowledge sharing, with Sayona inviting key Atlantic Lithium staff to its North American operations in Canada, where lithium production is being scaled up. This collaboration is expected to provide valuable insights into large-scale mining and commercial lithium production, applicable to the Ewoyaa Project.

The Executive Chairman of Atlantic Lithium, Neil Herbert expressed optimism about the partnership: “We wholeheartedly welcome the commitment from MergeCo towards the continued funding and development of the Ewoyaa Lithium Project. With lithium prices expected to remain subdued in the short-medium term, Ewoyaa’s low-cost profile makes it an attractive asset in MergeCo’s portfolio.”

The Ewoyaa Lithium Project, awarded a mining lease in October 2023, aims to produce 3.6 million tonnes of spodumene concentrate over a 12-year lifespan, positioning it as one of the world’s largest spodumene mines. This project is central to Atlantic Lithium’s vision of establishing Ghana’s first lithium-producing mine.

The merger remains subject to shareholder approval from both Piedmont and Sayona. Despite this, Atlantic Lithium remains committed to progressing the project and leveraging MergeCo’s expertise and resources to drive Ghana’s lithium ambitions forward.