Cape Coast-Ghana, Sept. 09, GNA – Ghana’s Minerals Income Investment Fund (MIIF), has finalised its resolve to invest US$32.9 million in Atlantic Lithium and its Cape Coast Lithium portfolio subsidiaries, to support the Ewoyaa Lithium Project.
Mr Edward Nana Yaw Koranteng, the Chief Executive Officer of MIIF, said the investment, highlighted Ghana as arguably the best mining investment destination in Africa in view of the options the Fund provided to investors.
He said the investment would enhance and accelerate Ghana’s efforts as an African critical minerals hub and to establish the country’s position in the global EV supply chain.
MIIF of Ghana was a minerals sovereign wealth fund with an underlying objective of supporting the growth of mining in Ghana and providing a de-risking option for investors in the mining space in Ghana, he said.
Mr Koranteng made the declaration at the Africa Down Under Conference 2023 held in Australia.
The investment in Atlantic Lithium signified the underlying objective which identified the Ewoyaa project as a world class, with huge prospects in the other tenements under Atlantic Lithium.
“The acquisition of a six per cent contributing interest in the Company’s Ghanaian subsidiaries, will support the funding of ongoing capital, and exploration expenditure requirements across Ewoyaa, and the broader Atlantic Lithium portfolio,” he said.
He indicated that after the project became successful, MIIF was hoping to invest in the value chain and the development of other by-products, such as feldspar, in line with the Government of Ghana’s critical minerals policy.
Commenting after the declaration, Mr Neil Herbert, the Executive Chairman of Atlantic Lithium, said the partnership with MIIF came at the right time as the project was advancing to its first production stage.
“MIIF’s investment, at both the listed company level and via Atlantic Lithium’s Ghanaian subsidiaries, represents a huge endorsement of the Company’s work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate,” he said.
He noted that the Ewoyaa project was not just Ghanaian owned, but for the citizenry, therefore, having MIIF as a shareholder did not only de-risks the Project from a funding perspective but, further aligned the Company with the best interests of its local stakeholders.
Furthermore, an investment by Ghana’s sovereign wealth fund demonstrated the Government of Ghana’s conviction in the Project, showcasing its intent to support the critical minerals agenda and position the country as a leading mining investment jurisdiction in Africa.
“In Ewoyaa, Ghana has a new pillar in its diversified minerals offering, further developing its esteemed mining credentials, which dates back over a century.
“MIIF’s investment in the Company’s Ghanaian subsidiaries will be used towards ongoing development, exploration and study expenditure across Ewoyaa and the Company’s broader portfolio,” he said.
Mr Herbert noted that MIIF’s contribution would significantly de-risk the success of the Project that increases Ghana’s efforts to drive the country’s position in the global EV supply chain.
Under the non-binding Heads of Terms agreed, MIIF would invest in the Company’s Ghanaian subsidiaries Barari DV Ghana Ltd, Green Metals Resources Limited, Moda Minerals Limited, and Joy Transporters Ltd, which hold the Company’s lithium tenements.
MIIF would acquire a six per cent contributing interest of the Ghana Portfolio for a total consideration of US$27.9 million (A$43.6m / £22.3m), payable on completion of the Strategic Investment.
The contributing interest would take the form of funding of development, exploration and studies expenditure incurred via monthly cash calls.
The Company would be granted the right to buy back MIIF’s interest in the Company’s Ghanaian subsidiaries if MIIF notifies of its interest to sell.
MIIF would also be granted one warrant for every two Atlantic Lithium shares at a price of US$0.3637, which will expire after a period of 18 months whereas any shares issued on the exercise of the warrants will be escrowed for two years.
