Atlantic Lithium Ltd ( AIM:ALL , ASX:A11 , OTCID:ALLIF ) has completed the transfer of Elevra Lithium Limited's rights in the Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt Co., clearing the way for Huayou to begin funding development.
Huayou now holds a 22.5% interest in Atlantic Lithium's Ghana portfolio, including Ewoyaa, and has assumed Elevra's previous spodumene offtake rights and other project obligations.
Completion followed confirmation from Ghana's Ministry of Lands and Natural Resources that it had no objection to Huayou becoming a controller of the relevant entities connected with the portfolio .
Huayou has also agreed that conditions relating to development funding under the existing project agreement have been satisfied or waived.
The Chinese battery materials group will now begin sole funding the remaining US$66 million of its Stage 3 development commitment.
That expenditure will allow Huayou to earn a further 27.5% interest, taking its total stake in Atlantic Lithium's Ghana portfolio to 50%.
Development costs will then be shared equally between Atlantic Lithium and Huayou.
Atlantic Lithium said the agreement provides a clearer pathway towards development of Ewoyaa, which is being advanced as Ghana's first lithium mine.
Chief executive Keith Muller said Huayou brings financial strength, technical capability and experience developing and operating large projects in Africa.
He said the new partnership further reduces development risk and provides a stronger platform for advancing Ewoyaa towards construction.
