Piedmont Reveals Development Funding For Ewoyaa Lithium Project

Piedmont Lithium Inc PLL plans to increase its stake in Atlantic Lithium Limited's Ewoyaa Lithium Project as part of a staged investment agreement to earn a 50% equity interest in the Ghanaian lithium portfolio.

Under the project agreement with Atlantic Lithium, Piedmont has exercised its option to acquire a 22.5% interest in Ewoyaa.

Piedmont also plans to provide a further $70 million toward Ewoyaa development capital to acquire an additional 27.5% interest in the Project.

The company expects to share the remaining project capital costs equally with Atlantic Lithium for a total Piedmont commitment of about $128 million toward the total estimated $185 million project capital costs.

Piedmont is entitled to purchase 50% of lithium concentrate production at Ewoyaa on a market-based pricing mechanism for the life of the mine.

This offtake is being planned as feedstock for the company's proposed, 30,000-metric-ton-per-year lithium hydroxide conversion facility in Tennessee.

Piedmont President and CEO Keith Phillips said the funding to support Ewoyaa furthers the company's strategy to supply crucial lithium resources to U.S. electric vehicle and battery manufacturers.

The company held $88.75 million in cash and equivalents as of June 30, 2023.

Price Action: PLL shares traded lower by 0.04% at $43.56 on the last check Thursday.