Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) shares adavanced on Wednesday boosted by an important funding breakthrough.
The company today told investors it had entered binding financing agreements with Long State Investments to raise up to £28 million over the next 24 months, with proceeds earmarked to support the Ewoyaa Lithium Project in Ghana.
The agreements comprise an initial £8 million share placing and a committed equity facility of up to £20 million, subject to shareholder approval - though Atlantic Lithium noted that its largest shareholder, Assore International Holdings, supports the proposal.
"We are pleased to secure both immediate and longer-term access to funding at such a key juncture in the Project's development," said chief executive Keith Muller.
"Against the backdrop of the subdued lithium pricing environment and the ongoing delay to the ratification of the Ewoyaa Mining Lease, these Agreements are timely to strengthen the company's financial footing through a means that minimises shareholder dilution.
"The terms of the agreements provide the company with maximum control in respect to drawing on the funding available, which significantly de-risks the successful delivery of the project as Ghana's first lithium mine."
Muller also highlighted that Long State has a strong track record of investing in companies with an attractive growth trajectory and backing them to achieve their strategic objectives.
Philip Ho, Long State Investments managing director, meanwhile, added: "We are very pleased to support Atlantic Lithium at such an important stage in its journey. The company's flagship Ewoyaa Lithium Project represents a high-quality, strategically significant asset with the potential to become Ghana's first lithium-producing mine, underpinned by strong fundamentals and improving market dynamics.
"We see Atlantic Lithium as a highly attractive investment opportunity."
In London, Atlantic Lithium shares were up 11.4% changing hands 9p.