Citing the planned merger between Piedmont Lithium Inc. and Sayona Mining as a step forward for the development of its flagship Ewoyaa Lithium Project in Ghana, Atlantic Lithium, a well-known exploration and development company listed on the Ghana Stock Exchange, has reaffirmed its support in the deal. Declared on November 19, 2024, the planned merger would unite Sayona Mining and Piedmont Lithium into a business called "MergeCo," with Sayona serving as the final parent firm.
Piedmont's commitments to Ewoyaa, including a $70 million co-funding agreement for development expenditures, are anticipated to be passed on to MergeCo. Through this agreement, MergeCo can get an offtake agreement for 50% of the spodumene concentrate at market pricing and acquire up to 50% of Atlantic Lithium's stake in the project.
By expanding its global presence, especially in North America and Australia, Atlantic Lithium thinks the acquisition will greatly reduce project risk. With Sayona inviting important Atlantic Lithium employees to its North American operations in Canada, where lithium production is being built up, the combination also presents chances for cooperation and information exchange. It is anticipated that this partnership will yield important information about commercial lithium production and large-scale mining that is relevant to the Ewoyaa Project.
Neil Herbert, Executive Chairman of Atlantic Lithium, was upbeat about the collaboration: "We sincerely appreciate MergeCo's dedication to the ongoing financing and advancement of the Ewoyaa Lithium Project. Given that short- to medium-term lithium prices are predicted to be low, Ewoyaa's low cost profile makes it a desirable addition to MergeCo's portfolio.
The Ewoyaa Lithium Project, which was granted a mining lease in October 2023, intends to become one of the biggest spodumene mines in the world by producing 3.6 million tonnes of spodumene concentrate over a 12-year period. The establishment of Ghana's first lithium-producing mine is a key component of Atlantic Lithium's plan. Both Piedmont and Sayona's shareholders must yet approve the transaction. Nevertheless, Atlantic Lithium is still dedicated to moving the project forward and using MergeCo's resources and experience to further Ghana's lithium aspirations.
