Proactive Investors - Atlantic Lithium (LON:ALLA) said Ghana’s Minerals Income Investment Fund (MIIF) has agreed to invest US$32.9 million (£26.3m) in the company and its Ghanaian subsidiaries.
MIIF's proposed investment will support the development of the Ewoyaa lithium project and the broader Cape Coast lithium portfolio in Ghana, Atlantic said in a statement.
This will comprise a 6% contributing interest in the Atlantic’s Ghana portfolio, inclusive of Ewoyaa, through the funding of development, exploration and studies expenditure.
In addition, MIIF will subscribe for US$5 million worth of Atlantic shares at 21p per share, equating to 3.05% of the share capital, plus a one-for-two warrant.
MIIF will also be able to nominate one director to each Ghanaian subsidiary and take part in bidding for offtake deals.
Neil Herbert, Atlantic Lithium’s executive chairman, said: "MIIF's investment, at both the listed company level and via Atlantic Lithium's Ghanaian subsidiaries, represents a huge endorsement of the company's work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate.
“An investment by Ghana's sovereign wealth fund demonstrates the Government of Ghana's conviction in the project.”
Edward Nana Yaw Koranteng, MIIF’s chief executive, added that the investment was a “watershed moment” and marked the fund’s first investment in the lithium space globally.