The Minerals Commission of Ghana has issued a mine operating permit for the Ewoyaa Lithium Project in Ghana, which is a joint venture between Piedmont Lithium (ASX:PLL) and Atlantic Lithium (ASX:A11).
Piedmont Lithium, which has a market capitalisation of $357.29 million, says receiving the mine operating permit marks an “important milestone” in achieving regulatory approvals that are required to begin construction.
COO Patrick Brindle says the company is very pleased with the issuance of the permit.
“We look forward to the future development of the Ewoyaa Project in due course, subject to the outcome of the mining lease ratification by the Ghanaian Parliament, other ongoing design works, and prevailing market conditions,” Brindle says.
The company sees the Ewoyaa Project as a relatively low-cost asset that is expected to be a “large” operation, targeted to produce 365,000 tonnes of spodumene concentrate annually.
Ghana’s Ministry of Lands and Natural Resources has granted a mining lease to conduct mining and commercial production activities at the project for an initial 15-year period.
Piedmont Lithium and Atlantic Lithium’s share prices both increased yesterday (10 October), with Piedmont rising 12.16% to close at $0.207, while Atlantic rose 15.51% to close at $0.335.
Interest in the lithium space is again on the rise, with news this week that Rio Tinto (ASX:RIO) will be acquiring Arcadium Lithium (NYSE:ALTM) for an all-cash transaction of US$5.85 per share.
On Wednesday (9 October), the company said the transaction will be implemented by way of a Jersey scheme of arrangement and is expected to close mid next year.
The offer represents a 90% premium to Arcadium’s closing price of US$3.08 per share on 4 October 2024, and values the company’s diluted share capital at US$9.65 billion.
Piedmont Lithium is working to develop a multi-asset, integrated lithium business focused on enabling the transition to a net zero world and creating a clean energy economy in North America.
Write to Aaliyah Rogan at Mining.com.au
Images: Piedmont Lithium
