(Alliance News) - Atlantic Lithium Ltd on Friday said it had entered into a non-binding heads of terms agreement with Ghana's Minerals Income Investment Fund, which if finalised, will see MIIF invest USD32.9 million in Atlantic Lithium, as well as its Cape Coast Lithium portfolio subsidiaries.
Shares in Atlantic Lithium were up by 20% at 24.92 pence each in London on Friday morning.
Atlantic Lithium is a Sydney-based, Africa-focused lithium exploration and development firm with assets in Ghana and Ivory Coast. MIIF is an Accra, Ghana-based sovereign minerals wealth fund.
The investment includes MIIF funding USD27.9 million into Atlantic Lithium's Ghana subsidiaries in order to buy a 6% contributing interest in its Ghana portfolio, which would support the development of the Ewoyaa lithium project.
"The contributing interest will take the form of funding of development, exploration and studies expenditure," Atlantic Lithium explained.
MIIF will also subscribe for 19.2 million Atlantic Lithium shares at a price of USD0.2598 per share for a value of USD5 million, which equates to 3.1% of the total issued share capital of the firm.
Atlantic Lithium Executive Chair Neil Herbert said: "MIIF's investment, at both the listed company level and via Atlantic Lithium's Ghanaian subsidiaries, represents a huge endorsement of the company's work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate.
"Having MIIF as a shareholder not only de-risks the project from a funding perspective but, equally importantly, further aligns the company with the best interests of its Ghanaian stakeholders, who we are proud to represent."
By Sabrina Penty, Alliance News reporter
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