Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) has been granted a mining lease for the Ewoyaa lithium project by Ghana's Ministry of Lands and Natural Resources.
It is the first mining lease to be granted for lithium in Ghana and carries exclusive rights to carry out mining and commercial production activities for an initial 15-year period, Atlantic said.
Ewoyaa’s processing plant is also part of the permit, enabling construction and movement of the project towards commercial production, said the statement.
Atlantic believes Ewoyaa will be one of the world’s lowest capital and operating cost hard rock lithium projects, with the potential for a 2.7Mtpa steady state operation producing a total of 3.6Mt of spodumene concentrate (approximately 350,000tpa) over a 12-year mine life.
Development costs are estimated at US$185 million; to be substantially funded by partner Piedmont Lithium (ASX:PLL, OTC:PLLTL) and a planned investment by MIIF, Ghana's sovereign wealth fund.
A competitive offtake partnering process is underway to secure project funding for a portion of the remaining 50% available feedstock.
Atlantic has also agreed to list on the Ghana Stock Exchange and will undertake more studies to assess the potential for feldspar as a by-product at Ewoyaa with downstream conversion in Ghana.
Neil Herbert, Atlantic Lithium’s executive chairman, 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 EV supply chain through the long-term production of lithium, with Atlantic Lithium as its partner of choice in this objective.
"The Mining Lease is a major endorsement of the viability of the Project and a landmark de-risking milestone in its advancement towards production.
"We believe that Ewoyaa will showcase the Central Region and Ghana more broadly as a highly attractive mining investment jurisdiction.”