Atlantic Lithium (A11), an African-focused lithium exploration company headquartered in Australia, has entered into a non-binding heads-of-terms agreement with Ghana's Minerals Income Investment Fund (MIIF). Under this agreement, MIIF will provide a significant investment of 51.4 million Australian dollars ($32.9 million) to support Atlantic Lithium's flagship Ewoyaa project in Ghana. MIIF will invest $27.9 million in Atlantic's Ghanaian subsidiaries, securing a 6 percent stake in the company's portfolio. Additionally, MIIF will subscribe to over 19 million shares in Atlantic Lithium at just over 40 cents each, resulting in $5 million shares held in escrow, granting them an extra 3.05 percent stake in A11. This investment underscores Ghana's emergence as a promising mining jurisdiction and highlights its role in the decarbonization movement.
Under the terms of the investment, MIIF will have the authority to appoint one representative to the boards of Atlantic Lithium's Ghanaian subsidiaries and participate in the competitive process for the commercial offtake of the Ewoyaa project. Furthermore, the fund will receive one warrant for every two Atlantic Lithium shares subscribed, with a 40 percent premium to the subscription price. This collaboration reflects MIIF's confidence in Atlantic Lithium's efforts and its vision to establish Ghana as a significant producer of spodumene concentrate.