Last checked at 27 Oct 2022 07:05
27 October 2022
Corporate Update
Quarterly Activities and Cash Flow Report
for the quarter ended 30 September 2022
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTC: ALLIF, "Atlantic Lithium" or the "Company"), the funded African-focussed lithium exploration and development company targeting to deliver Ghana's first lithium mine, is pleased to present its Quarterly Report for the quarter ended 30 September 2022.
The Quarterly Report for the quarter ended 30 September 2022 can be viewed and is available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/3079E_1-2022-10-27.pdf
Quarterly Highlights:
Ewoyaa Lithium Project, Ghana
· Delivered robust Pre-Feasibility Study ("PFS"), with highlights including:
o Post-tax NPV8 of US$1.33bn with free cash flow of US$2bn from Life of Mine ("LOM") revenues of US$4.84bn.
o Internal rate of return of 224% and payback less than five months, with an average LOM EBITDA of $248 million per annum.
o Maiden Ore Reserve of 18.9Mt at 1.24% Li2O declared, demonstrating sound resource to reserve conversion.
o 12.5-year mine life, 2Mtpa conventional dense media separation ("DMS") processing facility with average 255,000tpa 6% lithium spodumene concentrate ("SC6") production.
· Received assay results for approximately 6,900m of Reverse Circulation ("RC") drilling completed at the Ewoyaa Main and Grasscutter North targets as part of the planned 37,000m resource evaluation and exploration RC and diamond core drilling ("DD") programme (see releases dated 19 July and 2nd August 2022).
o The programme, which was completed post-period end, was extended by 10,000m for geotechnical, metallurgical, hydrogeological and exploration drilling to a total of 47,000m.
Corporate Highlights
· Commenced trading on the Australian Securities Exchange ("ASX") under the ticker 'A11'.
· Cash on hand at end of quarter of A$23.4 million.
Commenting on the Company's latest progress, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"We are pleased to be releasing the Company's quarterly report for the period ended 30 September 2022 - the first announcement of this kind following Atlantic Lithium's Admission on the ASX.
"The publishing of the Pre-Feasibility Study in September marked a significant milestone in the Ewoyaa Lithium Project's journey towards production. We have continued to build on this progress post-period end through the submission of an application for a mining licence to the Minerals Commission of Ghana and the completion of the extended drilling programme at the Project. Work is now ongoing to deliver a further Resource upgrade at Ewoyaa in the final quarter of the year or early in 2023.
"We also believe that the Company's listing on the ASX during the period will enable us to extend the Company's shareholder base, enable wider trading and offer greater liquidity for Atlantic Lithium shares. With a number of lithium companies on the ASX attracting significant investor interest recently, we hope that the listing will be a step towards achieving a more attractive valuation with respect to our industry-leading Ewoyaa Project. As an Australian-headquartered company, the listing also enables closer communication with our existing investor base in Australia.
"We look forward to providing further updates on our progress in due course."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For any further information, please contact:
Atlantic Lithium Limited Neil Herbert (Executive Chairman) Amanda Harsas (Finance Director and Company Secretary) www.atlanticlithium.com.au | Tel: +61 2 8072 0640
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atlantic@yellowjerseypr.com
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SP Angel Corporate Finance LLP Nominated Adviser Jeff Keating Charlie Bouverat
| Tel: +44 (0)20 3470 0470 |
Canaccord Genuity Limited Joint Company Broker Raj Khatri James Asensio Harry Rees
| Tel: +44 (0) 20 7523 4500
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Liberum Capital Limited Joint Company Broker Scott Mathieson Edward Thomas Kane Collings
| Tel: +44 (0) 20 3100 2000
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Yellow Jersey PR Limited Henry Wilkinson Dominic Barretto James Lingfield | Tel: +44 (0)20 3004 9512 |
Notes to Editors:
About Atlantic Lithium
www.atlanticlithium.com.au
Atlantic Lithium (formerly "IronRidge Resources") is an AIM and ASX-listed lithium exploration and development company advancing a portfolio of lithium projects and licenses in Ghana and Côte d'Ivoire through to production.
The Company's flagship project, the Ewoyaa Project in Ghana, is a significant lithium spodumene pegmatite discovery on track to become Ghana's first lithium producing mine. The Company signed a funding agreement with Piedmont Lithium Inc. for US$103m towards the development of the Ewoyaa Project. Based on the Pre-Feasibility Study, the Ewoyaa Project has indicated Life of Mine revenues exceeding US$4.84bn, producing a spodumene concentrate via simple gravity only process flowsheet.
Atlantic Lithium holds 560km2 & 774km2 of tenure across Ghana and Côte d'Ivoire respectively, comprising significantly under-explored, highly prospective licenses.