As the Minerals Income Investment Fund of Ghana (MIIF) announced its intention to invest $32.9 million in Atlantic Lithium Limited, an Australian-based lithium exploration and development business, the future appears bright for Ghana’s economic environment. With this investment, Ghana will take a big step closer to opening its first lithium mine and realizing its full potential on the world lithium market.
Ghana will become a significant participant in the lithium market, according to Atlantic Lithium Limited, a business with an African focus. Their flagship project, the Ewoyaa Lithium Project, is located in Ghana and has the potential to provide significant financial gains.
In order to obtain a 6% contributing interest in the larger Ghana Portfolio, which includes the Ewoyaa Lithium Project, MIIF would invest $27.9 million in Atlantic Lithium’s Ghanaian subsidiaries. This investment will show MIIF’s dedication to the project’s success by paying for development, exploration, and study costs.
In addition, MIIF will purchase 19,245,574 shares of Atlantic Lithium, worth $5 million, at a price of US$0.2598 per share. These shares, which make up 3.05% of the company’s total issued share capital, will be kept in escrow.
This tactical investment improves Atlantic Lithium’s ties to its Ghanaian stakeholders and confirms MIIF’s commitment to the lithium business. Additionally, it emphasizes the importance of the Ewoyaa Lithium Project and Ghana’s development as a significant mining investment destination.
We consider Ewoyaa as a Ghanaian project for Ghanaians, said Neil Herbert, Executive Chairman of Atlantic Lithium, adding that having MIIF as a shareholder “not only de-risks the project from a funding perspective but, equally importantly, further aligns the company with the best interests of its Ghanaian stakeholders, who we are proud to represent.” Edward Nana Yaw Koranteng, CEO of MIIF, emphasized their mission to support the growth of the Ghanaian economy.
Shareholders are reminded that, at this stage, the agreement is non-binding and the conclusion and terms of the proposed strategic investment by MIIF remain uncertain. However, the commitment shown by MIIF signals a promising future for Ghana’s lithium sector and the broader mining industry. This investment is a testament to Ghana’s attractiveness as a mining investment destination and reinforces its role in the critical minerals sector, positioning the country on the global stage.