Atlantic Lithium has announced the successful completion of its institutional placement (“Equity Placing”).

It raised a total of US$6.7 million at a price of 11.73 pence per new share.

In a circular to the investing public, the firm said a total of 43,478,261 new fully paid ordinary shares of no-par value each in the company will be issued as new shares.

As part of the Equity Placing, Assore International Holdings Limited (“Assore”), the Company’s largest shareholder, conditionally subscribed US$5.0 million through the allotment of 32,775,013 new shares at the issue price.

Atlantic Lithium Executive Chairman Neil Herbert; Chief Executive Officer, Keith Muller and Non-executive Director, Edward Koranteng have also conditionally subscribed for 1,260,870 new shares.

The Assore Participation and Director Participation are conditional on shareholder approval at the company’s upcoming Annual General Meeting.

On the basis that Assore’s participation is approved at the upcoming AGM, Assore will hold 30.56% of the company’s issued share capital.

Proceeds of the Equity Placing will be used to contribute to the funding of the company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana. This will be towards the Project Final Investment Decision (“Project FID”), including undertaking an optimisation and technical refinement of the Ewoyaa Definitive Feasibility Study and the completion of activities related to permitting and operating requirements prior to breaking ground at the project, and for working capital purposes.

Commenting, Neil Herbert, said: “We are pleased to have raised Australian $10 million in an Equity Placing led by the company’s largest shareholder, Assore, and supported by existing, new institutional shareholders and Participating Directors. The successful Placing, undertaken in a challenging market environment for lithium companies, demonstrates strong support for the project from existing and prospective shareholders”.

“Assore has proven to be a hugely supportive shareholder and partner since the company’s admission to AIM and, through its participation in the Equity Placing, has demonstrated its ongoing belief in the success of thepProject”, he added.

 Canaccord Genuity (Australia) Limited acted as Lead Manager to the equity placement. Wilsons Advisory & Stockbroking acted as Co-Manager.