Ghana Sovereign Wealth Fund to Invest in Ewoyaa Project

Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL; ASX: PLL), a leading global supplier of lithium resources critical to the U.S. electric vehicle supply chain, today announced that the Minerals Income Investment Fund of Ghana (“MIIF”) has agreed to invest $27.9 million to acquire a 6% stake in the Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) and an additional $5 million in Piedmont partner Atlantic Lithium Limited (“Atlantic”) (AIM: ALL; ASX: A11). MIIF’s project-level funding is expected to go directly toward Project development costs, with MIIF also contributing 6% of exploration and development costs within Atlantic’s Ghanaian portfolio on an ongoing basis.

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Piedmont Lithium President and CEO Keith Phillips joins Atlantic Lithium, MIIF, and Ghanaian officials as the strategic partnership is announced. (Photo: Business Wire)

Piedmont owns a 9% equity interest in Atlantic. In August, the Company announced that it will acquire a 22.5% interest in Ewoyaa, subject to government approvals, as part of its agreement to earn a 50% equity interest in Atlantic’s Ghanaian portfolio. To earn an additional 27.5% interest in Ewoyaa, Piedmont has committed to fund the first $70 million of project capex and share additional capital costs with Atlantic on an equal basis.

MIIF’s $27.9 million investment and ongoing contribution of 6% of development costs will reduce Piedmont and Atlantic’s capital contributions equally for the construction of Ewoyaa. The MIIF investment also will reduce Piedmont and Atlantic’s effective Project interests to 47% each before the Ghanian government’s free carried interest in the Project. Piedmont expects to fund its share of Ewoyaa capex through cash flow from its North American Lithium joint venture in Quebec, Canada.

Importantly, Piedmont will maintain its offtake agreement to purchase 50% of lithium concentrate production at Ewoyaa on a life-of-mine basis using a market-based pricing mechanism. This offtake is being planned as feedstock for Piedmont’s proposed 30,000 metric ton per year lithium hydroxide conversion facility in Tennessee.

Piedmont Lithium Chief Operating Officer and Atlantic Lithium Board Member Patrick Brindle said the investment agreement is a strong signal of the Ghanaian government’s confidence in Ewoyaa. “The investment by MIIF and the significant endorsement this funding represents will further de-risk the Ewoyaa project. We believe MIIF’s investment is a validation of both the work completed to date by our partners and the commitment of the Ghanaian government to support diversified mining development as the Project advances toward mining lease approval expected later in 2023 and targeted first production in the second half of 2025,” he said. “Ewoyaa is a core project for Piedmont Lithium, and we welcome MIIF’s support as an equity partner in this important development.”