Atlantic Lithium has completed a novation agreement between Elevra Lithium and Zhejiang Huayou Cobalt, transferring Elevra’s rights and interests in the Ewoyaa Lithium Project and the broader Ghana portfolio to Huayou.
The completion follows confirmation from Ghana’s Ministry of Lands and Natural Resources that it has no objection to Huayou becoming a controller of the relevant Singaporean and Ghanaian entities connected with the portfolio.
Under the agreement, Huayou holds the rights to a 22.5% interest in the Ghana portfolio and assumes Elevra’s prior spodumene concentrate offtake rights and other obligations under the project agreement. Development cost conditions precedent are now deemed satisfied or waived. Consequently, Huayou will begin sole funding the project’s development costs up to the remaining $66 million of the $70 million stage 3 obligation.
This funding will earn Huayou a further 27.5% interest, bringing its total to 50%, with all costs shared equally between the two companies thereafter.
Atlantic Lithium chief executive Keith Muller said that the completion represents a significant milestone for Ewoyaa.
He said that Huayou brings considerable financial strength, technical capability, and extensive experience in developing and operating major projects across Africa.
“Its involvement provides a strong platform from which to advance Ewoyaa and further de-risks the Project’s pathway towards development,” said Muller.
“We are working alongside Huayou in its capacity as our new Project partner to advance Ewoyaa towards development and the objective of establishing the Project as Ghana’s first lithium mine.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
