Piedmont to acquire 22.5% stake in Ewoyaa lithium project
Piedmont Lithium is set to own 50% stake in Ewoyaa lithium project in Ghana as per the contract with Atlantic Lithium that was established in July 2021.
The Ewoyaa project is situated in the Cape Coast region of Ghana. The DFS indicates a 12-year mine life, producing 2.7 million tonnes per annum of spodumene concentrate. The total estimated production of spodumene concentrate is around 3.6 million tonnes.
Ewoyaa project
The project is projected to yield a post-tax net present value of $1.5 billion, with a free cash flow of $2.4 billion over its lifespan. The total revenues over the life of the mine are estimated to be approximately $6.6 billion. It is expected to play a crucial role in Piedmont Lithium’s global portfolio and its planned lithium hydroxide conversion facility in Tennessee. The firm will first purchase a 22.5% interest in the project through funding the definitive feasibility study (DFS) for the project. The remaining shares will be acquired with an investment of $70m in the development capital.
The firm will spilt the remaining project capital costs with Atlantic. The total project cost is estimated to be $185 million, and Piedmont’s contribution is expected to be around $128 million. Piedmont anticipates funding the project through the sale of lithium concentrate from an offtake deal with North American Lithium. The investment is pending final governmental and regulatory approvals. The construction of the Ewoyaa project is expected to begin by the end of the next year, with first production targeted for 2025.
