Atlantic Lithium (ASX:A11) has consented for Elevra Lithium (ASX:ELV) to sell all of its rights and interests relating to the Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt Co.
Elevra holds the rights for 22.5% of interest in Atlantic Lithium’s Ghana portfolio, with the transaction resulting in US$71 million ($98.26 million) in cash for Elevra.
Elevra CEO and Managing Director Lucas Dow says the sale of its interest in Ewoyaa “improves financial flexibility”, allowing the company to focus on North American assets.
“It removes onerous development funding obligations and simplifies our portfolio by eliminating the structural complexities associated with Ewoyaa’s ownership structure,” Dow says.
“The US$71 million in gross proceeds will underpin further balance sheet flexibility as we pursue near-term development activities that will strengthen our position as a leading North American lithium producer.”
Huayou will solely fund Ewoyaa’s development costs for the remainder of funding obligations under the project agreement, eliminating Elevra’s ongoing funding commitments.
Elevra Lithium is a North American producer of lithium with assets in Australia, Canada, and the US.
Atlantic Lithium holds a portfolio of lithium projects in Ghana and Côte d’Ivoire covering 509km² and 774km².
Write to Maddison Elliott at Mining.com.au
Images: Atlantic Lithium
