Atlantic Lithium Limited (ALL) has raised A$10 million at a price of A$0.23, or 11.73p per share.
The company will use the money to provide funding to take its flagship Ewoyaa lithium project in Ghana towards a final investment decision.
This work will include undertaking an optimisation and technical refinement of the Ewoyaa definitive feasibility study and the completion of activities related to permitting and operating requirements prior to breaking ground, and for working capital purposes.
As part of the equity placing, Assore International Holdings, the company's largest shareholder, has conditionally subscribed for US$5.0 million.
On the basis that Assore's participation is approved at the upcoming AGM, Assore will hold 30.56% of the Company's issued share capital.
In addition, directors have also invested a combined A$290,000.
"We are pleased to have raised A$10 million in an equity placing led by the company's largest shareholder, Assore, and supported by existing, new institutional shareholders and participating directors,” said Neil Herbert, executive chairman of Atlantic Lithium.
“Assore has proven to be a hugely supportive shareholder and partner since the company's admission to AIM and, through its participation in the equity placing, has demonstrated its ongoing belief in the success of the project.”
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This placing was undertaken in a challenging market environment for lithium companies and demonstrates strong support for the project from existing and prospective shareholders. Progress in Ghana has been steady, and the project is regarded as something of a trailblazer in the mining of lithium in West Africa. Plenty still to look forward to here, especially since Ewoyaa is already slated to be a very low cost producer. It will be interesting to see if the optimisation studies are able to push costs down still further.