Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) told investors it has received a US$5 million equity investment from Ghana's Minerals Income Investment Fund (MIIF).
MIIF subscribed for just over 19.25 million shares at US$0.2598 per share, for a 3% stake, in a boost to the development of the flagship Ewoyaa lithium project.
The London- and Sydney-listed company said MIIF may also, subject to reaching a binding agreement, invest a further US$27.9 million in its Ghanaian subsidiaries in the coming months to acquire a 6% contributing interest in the whole Ghana portfolio.
Neil Herbert, executive chairman of Atlantic Lithium, said the investment from MIIF "recognises the considerable, long-lasting benefits that the company, through lithium production at Ewoyaa and the broader Cape Coast lithium portfolio, can bring to Ghana, while also being indicative of Atlantic Lithium's significant value upside to existing and prospective investors".
He added that as the company moves closer to beginning construction at Ewoyaa later this year, it expects to benefit greatly from MIIF's support.
"Notably, this includes MIIF's contributing interest towards the project's development expenditure, which further de-risks the success of the project."
Edward Nana Yaw Koranteng, MIIF chief executive, said the fund has participated in co-investment within the mining sector in Ghana partly as it "provides a de-risking mechanism" for global investors.
He said that Ewoyaa has "vast prospects with comparatively minimal initial capital requirements" and its proximity to the Takoradi port and other infrastructure "improves its profitability profile".
We are pleased to announce that the Minerals Income Investment Fund of Ghana has agreed to invest US$32.9m in Atlantic Lithium to support the development of the Ewoyaa Lithium Project.
Full announcement: https://t.co/nVagWsujSt#ALL #A11 $A11 $ALLIF #Lithium #Ghana #Mining pic.twitter.com/KUh7jMS9y0
— Atlantic Lithium (@AtlanticLithium) September 7, 2023