Atlantic Lithium shuns takeover by major African shareholder

In an announcement Wednesday morning, the Africa-focused lithium developer said it rejected the non-binding offer, the second presented by Assore over the past six weeks. In early October, Assore made an identical offer to buy the company.

Atlantic Lithium’s stock is currently trading at A$0.56 apiece in Australia, with a market capitalization of A$345.9 million.

Atlantic is focused on delivering the first lithium mine to Ghana. Last month, it was granted a 15-year mining permit for its Ewoyaa project, located approximately 100 kilometres southwest of capital city Accra.

“Assore, a major African mining company, has been a leading investor and key contributor to the company’s success since its listing in London in 2015,” Neil Herbert, executive chairman of Atlantic Lithium, said in a news release. “We look forward to maintaining our strong relationship with Assore as we progress Ewoyaa towards production.”

The decision comes after almost six years of exploration by Atlantic, and is part of Ghana’s strategy to capitalize on the worldwide transition to electric vehicles by securing its own supply of lithium, a key battery metal.

As part of the deal, Ghana’s sovereign wealth fund has acquired a 6% stake in Ewoyaa and 3.06% in Atlantic Lithium.

In a budget speech on Wednesday, Ghana’s finance minister said the project is expected to be a major contributor to the country’s gross domestic product. The aim is to produce some 360,000 tonnes of lithium annually over a 12-year mine life.