Mining Lease October 20237 Feb 2025 05:55
FYI, once parliament ratifies the lease. A conditional 2 years to commence production from ratification. Also royalty fees increased and MIIF investment increased.
Reminding shareholders of this statement gives optermism, once ratification occurs Atlantic lithium Board will start the process to FID. Anyway read the below statement, DFS will be updated near-term as stated in Q4 results including Fieldspar DFS metrics.
The Mining Lease is subject to parliamentary ratfication and the Company obtaining the necessary approvals and permits required by law in relation to its proposed activities, including but not limited to, the Environmental Protection Agency.
Under the terms of the Mining Lease, the Company must commence commercial production within 24 months from the date of its ratification and comply with Ghana’s Local Content Regulations.
The Government of Ghana has publicly stated its ambitions for long-term lithium production in Ghana and its objective to establish itself as a major hub in Africa in the EV supply chain. Through the grant of the Mining Lease, the Government of Ghana supports Atlantic Lithium as its partner of choice in these ambitions, which include evaluating
the establishment of feldspar production and downstream conversion opportunities in Ghana.
Fiscal Regime. The following key financial terms, agreed under the grant of the Mining Lease, have been updated from those considered as part of the Definitive Feasibility Study (“DFS”) for the Project (refer announcement of 29 June 2023).
Under the terms of the Mining Lease, the Government of Ghana will be entitled to a 13% free carried interest in the Project, represensting a 3% increase from the 10% free carried interest incorporated in the DFS.
The Government of Ghana will also be entitled to a 10% royalty rate, increased from the 5% royalty rate incorporated in the DFS.
Table 1 below is a summary of the key metrics table that has been prepared to estimate and evaluate
Project cash. Flows and economic viability for a 2.7Mtpa steady state operation over a 12-year mine life, using the parameters as defined in the DFS and incorporating the agreed terms of the Mining Lease.
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