Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) said it has awarded the processing plant front-end engineering design contract for the Ewoyaa lithium project in Ghana to Primero Group, an industry-leading vertically-integrated engineering company.
Under the terms of the agreement, Primero will provide services to optimise the project's flow sheet, identify long lead items, look to maximise long-term profitability, reduce execution risk and ultimately support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine.
The value of the contract is US$980,000, the consideration of which is to be paid in accordance with the three-stage earn-in agreement Atlantic has with Piedmont Lithium Inc (ASX:PLL, NASDAQ:PLL, XETRA:) to fund the project towards production.
Primero is a wholly-owned subsidiary of NRW Holdings Limited, and specialises in the design, construction and operation of global resource projects.
It has extensive experience in delivering large-scale construction contracts, including in the lithium industry and in West Africa.
Following the recent completion of the 47,000 metre resource and exploration drilling programme at the project, Atlantic Lithium is currently working towards producing an updated resource, the details of which will be announced in the first quarter of 2023. The resource will then be used to support a definitive feasibility study, expected to be completed by mid-2023.
Atlantic Lithium said it has also appointed Roux Terblanche as project manager.