Australia-based lithium producer Elevra Lithium has secured lithium-focused exploration and development company Atlantic Lithium’s consent to sell all of Elevra’s rights and interests relating to the Eyowaa lithium project, in Ghana, to Chinese cobalt and nonferrous metals supplier Zhejiang Huayou Cobalt.

Atlantic Lithium last week announced that Huayou intends to acquire all of the issued shares in Atlantic Lithium for $0.25 a share in cash, valuing the company at $210-million.

“Huayou’s proposal acknowledges Eyowaa as a highly attractive hard-rock lithium asset capable of serving the growing global electric vehicle and energy storage markets,” says Atlantic Lithium CEO Keith Muller.

Elevra Lithium currently holds the rights to a 22.5% interest in Atlantic Lithium projects in Ghana, inclusive of the Ewoyaa project.

If the required regulatory approvals for the agreement are obtained, Elevra will transfer all of its rights, obligations, title and interests associated with the project and in the Ghana portfolio, inclusive for the spodumene concentrate offtake rights, to Huayou.

Elevra expects to receive about $71-million in cash from Huayou and says these proceeds will provide it with additional financial flexibility and support the advancement of the company’s other growth projects in North America.

“The sale of our interest in the Ewoyaa project improves financial flexibility and allows us to sharpen our strategic focus on our North American assets. Importantly, it removes onerous development funding obligations and simplifies our portfolio by eliminating the structural complexities associated with Ewoyaa's ownership structure.

“The proceeds will underpin further balance sheet flexibility as we pursue near-term development activities that will strengthen our position as a leading North American lithium producer," says Elevra CEO and MD Lucas Dow.

“We look forward to working with Atlantic Lithium to complete the transaction and engaging with the government of Ghana ahead of planned development activities at the Eyowaa project in the near term.

“The acquisition of the Eyowaa project complements our existing battery metal mining operations in Africa and represents a logical transformation for Huayou as we continue to build a new energy materials business,” comments Huayou chairperson and president Chen Hongliang.

Elevra highlights that this agreement provides a clear pathway for the development of the Ewoyaa project, which is expected to expedite the delivery of the benefits that the project aims for, including the project’s host communities in Ghana’s central region.