Ewoyaa Lithium Project
Our joint venture Ewoyaa Lithium Project (Ewoyaa) is a relatively low-cost project1 that is expected to be a large operation, targeted to produce 365,000 metric tons1 of spodumene concentrate annually. Ghana’s Ministry of Lands and Natural Resources has granted a mining lease to conduct mining and commercial production activities at Ewoyaa for an initial 15-year period, subject to parliamentary ratification and to obtaining the necessary approvals and permits.
Piedmont owns an equity interest in Atlantic Lithium and is earning a 50% interest in Atlantic Lithium’s Ghanaian spodumene projects, which include its flagship Ewoyaa Lithium Project. We hold an offtake agreement with Atlantic Lithium for 50% of the annual production of spodumene concentrate at market prices on a life-of-mine basis from Ewoyaa.
We have exercised our option to acquire a 22.5% interest in Ewoyaa, having funded the completion of the project’s definitive feasibility study. We have mandated a financial advisor to develop a funding strategy that includes an offtake-partner process to help secure our share of the project construction capital and minimize dilution to Piedmont shareholders.
1 Production and economics based on Definitive Feasibility Study, published by Atlantic Lithium.
The Minerals Income Investment Fund of Ghana
The Minerals Income Investment Fund (MIIF), Ghana’s sovereign minerals fund, is helping pave the way for Ewoyaa to become the country’s first lithium-producing mine. MIIF holds a non-binding agreement with our joint venture partner, Atlantic Lithium, to invest $27.9 million to acquire a 6% equity interest in Ewoyaa and support project development costs. MIIF has also agreed to fund 6% of all future exploration and development costs of Atlantic Lithium’s Ghanaian portfolio.
MIIF’s investment in Ewoyaa is expected to equally reduce Piedmont Lithium and Atlantic Lithium’s current funding requirements for the project. If MIIF satisfies all its obligations under the agreement, and should Piedmont Lithium acquire a 50% equity interest in Atlantic Lithium Ghana, Atlantic Lithium Ghana will hold an 81% interest in the Ewoyaa project net of the interests that will be held by the Ghanaian government, resulting in Piedmont Lithium having an effective ownership interest of 40.5% in Ewoyaa.
Piedmont Lithium President and CEO Keith Phillips joins Atlantic Lithium, MIIF, and Ghanaian officials as the strategic partnership is announced.
Piedmont Lithium would continue to maintain a 50% life-of-mine offtake right to future spodumene concentrate production from Atlantic Lithium Ghana under these agreements.
A Well-Located Lithium Project.
The Ewoyaa Lithium Project is well located along a national highway in the Cape Coast region of Ghana, approximately 70 miles from the Port of Takoradi and 60 miles from Accra, with access to exceptional infrastructure.
Its location provides for moderate transport of high-grade, coarse-grained spodumene to customers.
HIGHLIGHTS
A relatively low capex and opex project1
Approximately 70 miles from a major port and located along a national highway
High-grade, coarse-grained spodumene
Employment opportunities for the local workforce
1 Production and economics based on Definitive Feasibility Study, published by Atlantic Lithium.