Atlantic Lithium (ALL) Shares Rallied 15% on Ewoyaa Mining Lease

The Atlantic Lithium Ltd's (LON: ALL) share price rallied 14.64% after being granted the mining lease for its flagship Ewoyaa Lithium Project in Ghana. The mining lease granted by Ghana's Ministry of Lands and Natural Resources will allow the company to deliver Ghana’s first lithium mine. 

The grant marked a crucial landmark for Atlantic Lithium and the Ghanaian government, which has been looking to diversify its mining activities from its primary gold-producing mining activities into other metals. The mining lease covers the proposed Ewoyaa Lithium Mine and Processing Plant, paving the way for commercial production. 

The Mining Lease ensures that the Ewoyaa Project remains one of the world's most cost-efficient hard rock lithium projects, thus reflecting strong commercial viability and exceptional profitability prospects for a steady-state operation producing 2.7 million tonnes per annum (Mtpa) and a total of 3.6 million tonnes of spodumene concentrate over a 12-year mine life.

Ewoyaa is poised to become one of the top ten global spodumene concentrate producers, signifying a significant global presence in the lithium market. The main processing plant is expected to achieve a rapid payback period of 9.5 months.

The cost structure remains competitive, with C1 cash operating costs estimated at US$377 per tonne of concentrate Free-On-Board (“FOB”) at the Ghana Port, following by-product credits. The All-in Sustaining Cost (“AISC”) is anticipated to be US$675 per tonne.

The estimated development cost stands at US$185 million, with substantial funding coming from Piedmont Lithium and an investment plan by Ghana's sovereign wealth fund, the Minerals Income Investment Fund (“MIIF”).

Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said: “As the first to be granted for lithium in the country, the award of the Mining Lease for the Ewoyaa Lithium Project is auspicious for both Ghana and Atlantic Lithium. It serves as Ghana's statement of intent to establish itself as a leading hub in Africa in the EV supply chain through the long-term production of lithium, with Atlantic Lithium as its partner of choice in this objective. The Mining Lease is a major endorsement of the viability of the Project and a landmark de-risking milestone in its advancement towards production.”

Atlantic Lithium (ALL) share price. 

The Atlantic Lithium (ALL) share price rallied 14.64% to trade at 30.07p, from Thursday’s closing price of 26.23p.