Atlantic Lithium Poised to Develop Ghana's First Lithium Mine

• Atlantic Lithium has a lithium deposit in Ghana's central region with a 35 million ton resource and 27 million ton reserve.
• They are located halfway between Accra and Takoradi, near the ocean and the deep sea port.
• The company released a DFS (Definitive Feasibility Study) in June, projecting a $6.6 billion revenue stream over a 12-year mine life.
• Atlantic Lithium aims to start production in September next year, with modular DMS units generating early revenue and a larger processing plant coming online in 2026.

About Atlantic Lithium

Atlantic Lithium is advancing plans to develop Ghana's first lithium mine at its Ewoyaa Project in the country's Central Region. With strong government support, access to infrastructure, and a premium lithium product, Atlantic Lithium is in a strong position to capitalize on surging demand for lithium to power the global energy transition.

Strategically Located High-Grade Deposit

The Ewoyaa lithium deposit is located approximately 6km from the coast and 111km from the deep-water port of Takoradi in Ghana's Central Region. With a 35 million tonne resource and 27 million tonne reserve, Ewoyaa will be the third largest hard rock lithium mine in Africa. Importantly, around 90% of the resource is coarse grained spodumene, ideal for simple and low-cost processing through dense media separation (DMS).

Keith Mueller, CEO of Atlantic Lithium, stated: "You couldn't ask for better geology - 90% of our ore bodies are coarse grain spodumene which can be easily processed via DMS."

Robust Economics Demonstrated in DFS

Atlantic Lithium completed a Definitive Feasibility Study (DFS) in June 2022, demonstrating Ewoyaa's potential as a highly profitable new lithium mine. Over a 12-year life, the DFS sees Ewoyaa generating revenue of US$6.6 billion based on production of 360,000 tonnes per year of 6% spodumene concentrate. The project has an NPV8 of US$1.5 billion with a low initial capex of just US$185 million.

According to Mueller: "The project's NPV is US$1.5 billion with a capital requirement of only US$185 million - astonishing figures considering the scale of production."

Funded to Production

The low initial capex provides Atlantic Lithium with a clear pathway to production. The company's joint venture partner, Piedmont Lithium, will fund US$70 million of development capex. An additional US$57 million will come from Atlantic Lithium to meet its 50% share.

The company has already made strong progress, with US$32.9 million invested by Ghana's Minerals Income Investment Fund in September 2022. Atlantic Lithium is also assessing options to monetize 50% of offtake that remains uncommitted. This will fund remaining development costs and minimize dilution for Atlantic shareholders.

Early Revenue Generation

Atlantic Lithium plans to fast-track early production and cash flow by commissioning a modular 15,000 tonne per annum DMS plant in Q1 2025 ahead of the main plant. This will generate over US$170 million in revenue during the 9-month campaign, while training local operators in DMS processing.

Construction on the main 180,000 tonne per annum DMS plant will run in parallel, with the first production scheduled for January 2026.

Premium Offtake Agreements

Unlike many lithium projects, Atlantic Lithium is not reliant on accessing often uncertain spot markets. Offtake from 50% of production is destined for Piedmont Lithium's Tennessee lithium hydroxide plant, which supplies Tesla and LG Energy Solution.

The remaining 50% is uncommitted and Atlantic Lithium has engaged an investment bank to assess options to monetize this capacity and minimize financing risk.

Significant Exploration Upside

To date, Atlantic Lithium has only explored and drilled 3% of its tenure at Ewoyaa. Systematic studies have identified multiple additional targets close to the existing resources that are yet to be drill tested. According to Mueller, the company sees "a lot of potential going forward from our exploration perspective."

With its clear path to near-term production at Ewoyaa, proven team, strong government and strategic partnerships, and significant exploration upside, Atlantic Lithium is in a commanding position to take advantage of surging lithium demand and deliver significant value for shareholders.

Reasons to Invest in Atlantic Lithium's Ewoyaa project

Strong Fundamentals

• High-grade, coarse-grained deposit amenable to simple processing results in low opex and capex intensity. This provides confidence in achieving targeted economics.
• Significant production scale of 360,000 tpa concentrate positions Ewoyaa as a globally significant new lithium mine.
• Robust project economics demonstrated in DFS with US$1.5 billion NPV8 and 19 month payback.

Clear Pathway to Production

• Low initial capex of US$185 million, with US$70 million funded by JV partner. The remaining requirement of US$57 million for Atlantic Lithium is modest.
• Early production from the modular DMS plant will generate cashflow from Q1 2025 to support funding.
• Offtake agreement with Piedmont Lithium secures 50% of production. Additional offtake options provide funding flexibility.

Growth Potential

• Exploration upside with most of the tenure still to be tested. Any new discoveries could significantly expand project life and scale.
• Potential to expand downstream in Ghana given strong government support to build industry.

The combination of solid project fundamentals, manageable funding requirements, and significant growth potential make Ewoyaa an exciting near-term production opportunity in a Tier 1 mining jurisdiction. The project can leverage surging lithium demand and prices to deliver strong shareholder returns.