Lithium developer Piedmont Lithium has thrown its support behind Aim- and ASX-listed Atlantic Lithium’s development of its Ewoyaa project, in Ghana.

Atlantic reported late last month that Piedmont had notified the company of its intent to support the development of Ewoyaa towards production.

As part of a staged investment agreement to earn a 50% interest in Atlanic’s spodumene projects in Ghana, Piedmont has exercised its option to acquire an initial 22.5% interest to fast-track the development of the project.

To earn the full 50% interest in Atlantic’s Ghana portfolio, Piedmont will sole-fund the first $70-million, and 50% of any additional development expenditure, towards the total $185-million development expenditure for the project indicated in the definitive feasibility study (DFS) which estimated a 2.7-million-tonne-a-year steady-state operation, producing 3.6-million tonnes of spodumene concentrate over a 12-year mine life.

Piedmont has now earned its initial 22.5% interest in the project by sole funding $5-million towards a regional exploration programme, and a further $12-million towards the delivery of a prefeasibility study and DFS.

Piedmont will now self-fund a further $70-million to earn an additional 27.5% interest in the Ghana portfolio, taking its total interest to 50%.

Atlantic said this stage of funding would result in the construction and initial production of spodumene concentrate at Ewoyaa, with production currently targeted for 2025, after required licences and approvals had been received.

“Since our initial agreement in July 2021, Piedmont Lithium remained a highly supportive and collaborative partner, working alongside the company to achieve our shared goal of delivering a successful spodumene concentrate mine at Ewoyaa,” said Atlantic executive chairperson Neil Herbert.

“We are, therefore, delighted that Piedmont has elected to proceed with the next phase of Ewoyaa’s development.

“In line with the agreement, Piedmont is expected to contribute 70% of the project’s total $185-million development expenditure as it earns up to 50% of the company’s share of its lithium projects in Ghana, which include the Ewoyaa lithium project. “Following the recent delivery of the milestone Ewoyaa DFS, which reaffirmed the project’s economic viability and represented the final condition of Stage 2 of the agreement, Piedmont has notified the company of its intent to provide the agreed funding needs towards the project’s development expenditure.

“We believe that this commitment to the next stage of development reflects Piedmont’s strong belief in Ewoyaa, further de-risking the project and moving us ever closer to first spodumene concentrate production in Ghana,” said Herbert.