Atlantic Lithium Limited has provided its consent under an agreement for Elevra Lithium Limited (Elevra) to sell all of its rights and interests in respect of the agreements related to the Company’s Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt Co., Limited (Huayou).
Elevra currently holds the rights to a 22.5% interest in the Company’s lithium projects in Ghana (Ghana Portfolio), inclusive of the Project, following the satisfaction of the terms set out in Stage 2 of the Project Agreement (refer announcement of 17 August 2023).
If the relevant regulatory approvals, condition precedent to the agreement is satisfied, Elevra will transfer all of its rights, obligations, title and interests associated with the Project and in the Ghana Portfolio (including in relation to its spodumene concentrate offtake rights) to Huayou.
The agreement provides for reciprocal releases for Atlantic Lithium and Elevra (including any disputes) and mutual representations and warranties customary for an agreement of this nature.
If the agreement is completed, Huayou has agreed that the development costs conditions precedent are deemed to be satisfied or otherwise waived.
Accordingly, Huayou will then begin sole funding the Project’s development costs up to the remainder of the sole funding obligations under the Project Agreement.
The Company considers that the agreement provides a clear pathway for the development of the Project, which is expected to expedite the delivery of the benefits that the Project promises for Ghana, notably including the Project’s host communities in Ghana’s Central Region.
The agreement is not conditional upon the Scheme of Arrangement announced by the Company with Huayou on 7 May 2026 being implemented.
Huayou has agreed with Elevra that should within the next 3 months the Scheme Consideration offered under the Scheme of Arrangement change, that the consideration paid under the agreement reflect the same proportional change. The Company will keep the market informed of any material developments in accordance with its continuous disclosure requirements.
