Piedmont Lithium (ASX:PLL) has agreed to sell 24.3 million shares in Atlantic Lithium (ASX:A11) to the latter’s largest shareholder, Assore International Holdings, for US$7.8 million.
Piedmont, which has a $558.88 million market capitalisation, says the shares will be sold to Assore for £0.25 per share, representing a premium to the prevailing market price.
The shares to be sold are about 3.9% of Atlantic’s outstanding shares. Following the transaction, Assore will own about 28.4% of Atlantic.
Piedmont is expected to retain 32.7 million Atlantic shares, about 5.2% ownership of Atlantic.
According to Piedmont, the sale of the shares will have no impact on Piedmont’s joint venture, earn-in, or offtake position with Atlantic of the Ewoyaa Project.
Piedmont Lithium President and Chief Executive Officer (CEO) Keith Phillips says the company is taking a disciplined approach to deploying capital at its Ewoyaa project given the current lithium price environment.
“We finished 2023 in a ‘strong’ position with about US$72 million in cash and US$47.4 million in marketable securities as of market close on 17 January. We have always viewed our Atlantic shares as a potential source of capital and are pleased to further bolster our cash balance through this agreement.
We remain confident about the potential of Ewoyaa as a logistically advantaged, low-cost producer of spodumene concentrate, but are taking a disciplined approach to deploying capital in the current lithium price environment and positioning ourselves for the recovery we anticipate in the lithium market.”
Piedmont Lithium is focused on developing a ‘world-class’, multi-asset, integrated lithium business focused on enabling the transition to a net zero world.
Write to Adam Drought at Mining.com.au
Images: Piedmont Lithium
