A US-based company, Piedmont Lithium, has revealed plans to sell a portion of its shares in Atlantic Lithium, a company listed on the Aim and ASX exchanges, to Assore International, the largest shareholder in Atlantic.
The sale involves 24.3 million shares of Atlantic at £0.25 per share, generating approximately $7.8 million in proceeds for Piedmont.
Piedmont Lithium’s President and CEO, Keith Phillips, expressed satisfaction with the deal, emphasizing the strategic use of their Atlantic shares for capital purposes.
Following the transaction, Piedmont’s ownership in Atlantic, particularly the Ewoyaa project in Ghana, will be reduced to approximately 5.2%, constituting about 3.8% of Atlantic’s outstanding shares.
Assore International, which had previously attempted to acquire Atlantic, now holds approximately 28.4% of Atlantic. Importantly, the share sale does not impact Piedmont’s existing joint venture, earn-in agreements, or offtake positions with Atlantic or the Ewoyaa project.
Keith Phillips reiterated Piedmont’s confidence in the Ewoyaa project as a logistically advantageous, low-cost spodumene concentrate producer.
However, the company is adopting a prudent approach to capital deployment in the current lithium price environment, aiming to position itself for the anticipated recovery in the lithium market.
Piedmont Lithium’s overarching objective is to emerge as one of the leading lithium hydroxide producers in North America, leveraging assets with economic interest, including the Carolina Lithium and Tennessee Lithium projects in the US, as well as collaborations in Quebec with Sayona Mining and in Ghana with Atlantic Lithium.
source:tigpost.co