Aim- and ASX-listed Atlantic Lithium has announced the completion of the agreement between Elevra Lithium and Zhejiang Huayou Cobalt for the transfer of Elevra’s rights and interests in Atlantic Lithium’s Ewoyaa lithium project and broader lithium portfolio in Ghana to Huayou.

As announced in May, Atlantic Lithium consented to this novation agreement pursuant to arrangements entered into with Huayou and Elevra.

Completion of the novation agreement follows confirmation from Ghana’s Ministry of Lands and Natural Resources that it has no objection to Huayou becoming a controller of the relevant Singaporean and Ghanaian entities connected with Atlantic Lithium’s Ghana portfolio.

Following the completion of the novation agreement, Huayou now holds the rights to a 22.5% interest in Atlantic Lithium’s lithium projects in the Ghana portfolio, which includes Ewoyaa, and assumes Elevra’s prior spodumene concentrate offtake rights and other rights and obligations under the agreements relating to the project.

As a result of the completion, Huayou has agreed that the development costs conditions precedent under the project agreement are deemed to be satisfied or otherwise waived.

Accordingly, subject to and pursuant to the project agreement and relevant supplementary agreements, Huayou will begin sole funding the project’s development costs up to the remainder of the $70-million sole-funding obligations under Stage 3 of the project agreement (being $66-million), through which Huayou will earn a further 27.5% in the Ghana portfolio (to take its total interest to 50%), with all costs shared equally between Atlantic Lithium and Huayou thereafter.

Atlantic Lithium says it believes the completion of the novation agreement provides a clear pathway for the development of Ewoyaa and believes that Huayou’s assumption of Elevra’s prior rights and obligations will expedite the delivery of the benefits envisaged for Ghana, including the project’s host communities.

“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,” Atlantic Lithium CEO Keith Muller says.

“Huayou brings considerable financial strength, technical capability and extensive experience in developing and operating major projects across Africa. Its involvement provides a strong platform from which to advance Ewoyaa and further derisks the project’s pathway towards development.

“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,” he adds.