• Atlantic Lithium signs £28 mln deal with Long State to fund Ewoyaa project.

• Piedmont Lithium dispute over $70 mln mine investment remains unresolved.

• Project aims to produce 3.6 mln tons of spodumene over 12 years at $185 mln cost.

Atlantic Lithium announced on Wednesday, September 3, that it has signed binding agreements with Long State Investments to raise up to £28 million ($37.7 million). The financing, which combines proceeds from a share placement and a loan, is meant to support development of the Ewoyaa lithium project in Ghana, even as the company faces a dispute with joint venture partner Piedmont Lithium.

Under a 2021 agreement, Piedmont committed to invest $70 million in the mine’s construction in exchange for a 50% stake. Development costs and related expenses were to be shared equally between the two partners. Four years later, the deal is at the heart of a conflict, with Atlantic Lithium saying in late July that Piedmont has refused to honor the commitment.

Piedmont argues that conditions for releasing its investment have not yet been met, a claim disputed by Atlantic Lithium. While the company has not directly linked the Long State financing to the dispute, the timing raises questions. Negotiations are ongoing and arbitration remains a possible outcome.

“The balance of the Development Costs the Company has claimed from Piedmont is in dispute and remains outstanding. The Company remains engaged in discussions with Piedmont concerning these amounts and an established process exists within the Project Agreement for resolution including good faith negotiations and referral to arbitration,” Atlantic Lithium noted in its July 31 quarterly report.

The case will be closely watched in the coming weeks for its potential impact on Ewoyaa’s timeline. The dispute coincides with Piedmont’s merger process with Australian miner Sayona Mining. Meanwhile, Atlantic Lithium is pursuing ratification of its mining lease by Ghanaian authorities, along with possible tax incentives to offset weak lithium prices.

A 2023 feasibility study projected Ewoyaa’s output at 3.6 million tons of spodumene concentrate over a 12-year mine life, with an initial capital cost of $185 million.