In a resolute move, Piedmont Lithium (ASX: PLL), an emerging player in the lithium sector, has officially affirmed its commitment to bolstering the development of Atlantic Lithium’s (ASX: A11) flagship project, Ewoyaa, situated in Ghana. This declaration comes as a testament to the robust partnership between the two companies and their shared vision of advancing the lithium production landscape. Piedmont’s strategic involvement is guided by a staged investment agreement forged with Atlantic, formerly known as IronRidge Resources, back in July 2021.
A Steady Progression Towards Equitable Equity: Piedmont’s Investment Journey
Under the terms of the staged investment agreement, Piedmont Lithium has embarked on a carefully orchestrated journey to establish a significant stake in Atlantic Lithium’s Ghana-based spodumene projects. The initial phase saw Piedmont securing a 22.5% interest in the project by contributing $5 million towards a comprehensive regional exploration program in 2022, followed by an additional investment of $12 million in the delivery of a pre-feasibility study in September of the same year.
Next Steps: Piedmont’s Evolving Commitment
The forthcoming stage of this partnership involves Piedmont Lithium taking the reins to sole fund the first $70 million of the total development expenditure for the Ewoyaa project. Furthermore, Piedmont and Atlantic are poised to collaboratively share the financial responsibilities for any additional funding required to bring the mine to fruition, with a balanced 50:50 distribution. This phase is pivotal as it is envisaged to culminate in the completion of the construction process and the initiation of spodumene concentrate production at the Ewoyaa site.
A Future Outlook: Anticipating Production and Regulatory Approvals
With meticulous planning and a determined focus, Atlantic Lithium aims to commence production at the Ewoyaa project by 2025. This timeline is contingent upon the successful acquisition of all the necessary licenses and approvals from the regulatory authorities. The project’s progression has been characterized by consistent strides towards the anticipated goal, backed by the cohesive partnership between Piedmont and Atlantic.
Unwavering Support: Acknowledgment of a Cohesive Partnership
Neil Herbert, the Executive Chairman of Atlantic Lithium, has expressed profound appreciation for Piedmont’s unwavering support throughout the journey. He characterizes Piedmont as a “highly supportive and collaborative partner,” underscoring the significance of their joint effort in de-risking the Ewoyaa project. Herbert further elaborates that Piedmont’s decision to advance to the next phase of development underscores their strong faith in the project’s potential.
Confidence in Progress: Piedmont’s CEO Speaks
Keith Phillips, the Chief Executive Officer of Piedmont Lithium, echoes a sentiment of assurance and confidence in the partnership’s progress. Emphasizing Ewoyaa’s pivotal role in the company’s global portfolio, Phillips applauds the strides made by Atlantic in conducting a robust Definitive Feasibility Study (DFS) and engaging with Ghana’s Minerals Commission. He looks forward to continuing to collaborate with Atlantic to propel the asset forward.
Project Dynamics: Ewoyaa’s Development Blueprint
The Ewoyaa project’s development blueprint was solidified through an extensive Definitive Feasibility Study released in June. This comprehensive study incorporated a resource assessment derived from 137,153 meters of drilling, including a substantial 47,000-meter program executed in 2022. The assessment revealed a resource of 35.3 million tonnes with a lithium oxide grading of 1.25%. Additionally, ore reserves were established at 25.6 million tonnes with a lithium oxide concentration of 1.22%. These findings underscore the project’s economic viability and highlight its remarkable profitability potential.
Anticipating Steady Operations: A Glance at Ewoyaa’s Future
The Definitive Feasibility Study painted a promising picture for Ewoyaa’s future. With a projected steady state operation of 2.7 million tonnes per annum, the project anticipates producing a significant 3.6 million tonnes of spodumene concentrate over a 12-year lifespan. The study highlighted the exceptional profitability potential of the operation, positioning Ewoyaa as a substantial contributor to the global lithium supply chain.
In conclusion, Piedmont Lithium’s steadfast commitment to supporting Atlantic Lithium’s Ewoyaa project marks a significant milestone in the evolution of this strategic partnership. As the two companies continue to collaborate and make headway in the development process, the horizon looks promising for Ewoyaa’s role in shaping the future of lithium production.
