Zhejiang Huayou Cobalt Co. Limited has completed the takeover of Elevra Lithium Limited’s rights and obligations in the Ewoyaa Lithium Project, giving the Chinese battery materials group a direct stake in the development of what is planned to become Ghana’s first lithium mine.
Atlantic Lithium Limited announced that the novation agreement between Elevra and Huayou had been completed after Ghana’s Ministry of Lands and Natural Resources confirmed that it had no objection to Huayou becoming a controller of the relevant entities connected to the project.
The transaction transfers Elevra’s rights across Atlantic Lithium’s wider Ghana portfolio to Huayou, including its interest in Ewoyaa and existing spodumene concentrate offtake rights.
Huayou now holds a 22.5% interest in Atlantic Lithium’s Ghana lithium portfolio.
Huayou to Fund Up to US$66m
The agreement also shifts a significant portion of Ewoyaa’s development financing to Huayou.
Atlantic Lithium said Huayou had agreed that the conditions linked to development costs under the existing project agreement had either been satisfied or waived.
That allows Huayou to begin solely funding the remaining development expenditure under Stage 3 of the agreement.
The outstanding commitment stands at US$66 million from an original US$70 million funding obligation.
By meeting that commitment, Huayou will earn a further 27.5% interest in the Ghana portfolio, taking its total stake to 50%.
Once the 50% threshold is reached, subsequent project costs are expected to be shared equally between Atlantic Lithium and Huayou.
The arrangement gives the Ewoyaa project a clearer financing route at a stage when access to development capital will be central to moving the mine from planning towards construction and production.
Offtake Rights Also Transfer to Huayou
Huayou has also assumed Elevra’s previous rights to spodumene concentrate from the project.
Spodumene is a lithium bearing mineral used as a key feedstock in the production of lithium chemicals for batteries and other applications.
Atlantic Lithium said the transfer covers both Elevra’s rights and its obligations under existing project agreements.
The company expects Huayou’s involvement to speed up development and reduce uncertainty around the project’s financing and execution.
Atlantic Lithium Sees Clearer Development Path
Atlantic Lithium Chief Executive Officer Keith Muller described completion of the agreement as an important step for Ewoyaa.
“Completion of the Novation Agreement represents a significant milestone for Ewoyaa, with Huayou now assuming Elevra's rights and obligations in the Project, including the remaining sole funding commitments under the Project Agreement.” - Mr Muller
Mr Muller said Huayou brings financial capacity and experience in developing and operating mining projects in Africa.
“Huayou brings considerable financial strength, technical capability and extensive experience in developing and operating major projects across Africa,” he said.
According to Atlantic Lithium, that experience provides a stronger platform for advancing Ewoyaa and reducing some of the development risks attached to the project.
The company said it is already working with Huayou as its new project partner to move Ewoyaa towards development.
Ghana Portfolio Remains Central
Ewoyaa remains the flagship asset in Atlantic Lithium’s Ghana portfolio and is being developed with the ambition of becoming the country’s first producing lithium mine.
The company said completion of the transaction should help accelerate the economic benefits expected from the project, including benefits for surrounding communities.
“We are working alongside Huayou in its capacity as our new Project partner to advance Ewoyaa towards development and the objective of establishing the Project as Ghana's first lithium mine.” - Mr Muller
The immediate focus will now shift to how quickly the new partnership can translate the funding structure into development activity on the ground.
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