Atlas Lithium Corporation ATLX has signed definitive investment and offtake agreements with Mitsui & Co, Ltd, which the Company considers to be a strong validation of its project and team.
Mitsui is purchasing $30 million in common shares of Atlas Lithium at a 10% premium to the 5-day VWAP and, at the same time, entering into an Offtake Agreement for the future purchase of 15,000 tons of lithium concentrate from Phase 1 and 60,000 tons per year for five years from Phase 2 of Atlas Lithium's soon to be producing Neves Project in Brazil's Lithium Valley.
Why Does It Matter? The Strategic Investment provides Atlas Lithium with immediately available funds to continue its rapid development toward revenue generation with the production and sale of high-quality, low-cost, environmentally sustainable lithium concentrate.
Also Read: Atlas Lithium Taps Industry Veteran Brian Talbot as COO Ahead of Q4 Production Start
Mitsui and Atlas Lithium entered a Memorandum of Understanding as announced in January 2023.
The two companies have since developed a close rapport, including multiple due diligence visits by Mitsui executives and technical experts to the Company's project and visits by Atlas Lithium's management to several of Mitsui's offices in Brazil, the United States, Canada, and Japan.
The Strategic Investment culminates the mutual interest in growing Atlas Lithium.
It delivers additional financing to allow Atlas Lithium to continue aggressively advancing its development toward operating an open-pit lithium mine and spodumene concentrating facility by the fourth quarter of 2024.
Mitsui has a strong presence in Brazil dating from 1960 and a long history of profitable mining investments.
Price Action: ATLX shares closed higher by 7.18% at $14.92 on Wednesday.
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
