Name of the Project
Ewoyaa lithium project.

Location
Ghana’s Central Region, about 100 km south-west of Accra and about 110 km from Takoradi port. 

Project Owner/s
Africa-focused lithium exploration and development company Atlantic Lithium. 

Atlantic Lithium reported on May 7 that it had entered into a binding scheme implementation deed with China’s Zhejiang Huayou Cobalt, under which Huayou intends to acquire all Atlantic Lithium shares for $0.25 a share in cash.

The proposed transaction values Atlantic Lithium at about $210-million and underscores Huayou’s interest in the Ewoyaa lithium project, as well as Atlantic Lithium’s broader exploration portfolio in Ghana and Côte d’Ivoire.

Atlantic Lithium’s board said it had assessed its strategic options and concluded that the offer represented an attractive proposition for shareholders, particularly given lithium price volatility, jurisdictional challenges and the financing, development and execution risks associated with Ewoyaa under the current joint venture structure.

The proposed transaction has also been endorsed by Atlantic Lithium’s biggest shareholder, Assore International Holdings, which holds about 26.4% of the company.

Huayou said Ewoyaa would complement its existing African battery-metals operations and support its new-energy materials strategy. Atlantic Lithium said the transaction was expected to accelerate the delivery of benefits from Ewoyaa for Ghana, including socioeconomic development in the project’s host communities.

The acquisition remains subject to various conditions and is expected to be finalised later this year.

Project Description
The Ewoyaa project is set to be Ghana’s first lithium-producing mine. 

Over the 12-year life-of-mine (LoM), the project is expected to produce about 3.6-million tonnes of spodumene concentrate comprising 6% and 5.5% product, as well as 4.7-million tonnes of secondary product as a by-product of dense-media separation (DMS). 

Development involves the opencut mining of several lithium-bearing pegmatite deposits, conventional DMS processing and supporting infrastructure. The project is based on conventional openpit mining and a simple, low-energy DMS flowsheet. 

The June 2023 definitive feasibility study was based on a mineral resource of 35.3-million tonnes at 1.25% lithium oxide (Li₂O) and ore reserves of 25.6-million tonnes at 1.22% Li₂O. However, Atlantic Lithium announced an updated mineral resource in July 2024 of 36.8-million tonnes at 1.24% Li₂O, with 81% of the total resource in the measured and indicated categories. 

Potential Job Creation
The project is expected to create more than 900 jobs, with Atlantic Lithium's intending to apply a hire-local philosophy. 

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.5-billion and an internal rate of return of 105%, with a payback of 19 months. 

Capital Expenditure
$185-million. 

Planned Start/End Date
Atlantic Lithium has indicated that the final investment decision remains subject to the completion of the remaining permitting and ratification process, final engineering and design work, and the finalisation of financing and offtake arrangements. 

Latest Developments
On May 11, Australia-based lithium producer Elevra Lithium reported that it had secured lithium-focused exploration and development company Atlantic Lithium’s consent to sell all of Elevra’s rights and interests pertaining to the Eyowaa project to Chinese cobalt and nonferrous metals supplier Zhejiang Huayou Cobalt.

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 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 has said these proceeds will provide it with additional financial flexibility and support the advancement of the company’s growth projects in North America.

Elevra has indicated that the 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.

Key Contracts, Suppliers and Consultants
DRA Projects (DMS and project engineering work). 

Contact Details for Project Information
Atlantic Lithium, tel +61 2 8072 0640 or email info@atlanticlithium.com.au.