Lithium exploration and development company Atlantic Lithium has completed an institutional placement to raise A$10-million at a price of A$0.23 a share. Under the placement, a total of about 43.4-million new fully paid ordinary shares of no-par value each in the company will be issued.

Proceeds of the equity placing will be used to contribute to the funding of the company's flagship Ewoyaa lithium project, in Ghana, towards the final investment decision (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.

The money will also be used for working capital purposes.

As part of the equity placing, Assore International Holdings, Atlantic’s largest shareholder, has conditionally subscribed for A$7.5-million through the allotment of about 32.7-million new shares at the issue price.

Atlantic executive chairperson Neil Herbert, CEO Keith Muller and nonexecutive director Edward Koranteng have also conditionally subscribed for about 1.2-million new shares at the issue price, equating to an aggregate of A$290 000.

The Assore participation and director participation are conditional on shareholder approval at the company's upcoming AGM. Assuming Assore's participation is approved at the upcoming AGM, Assore will hold 30.56% of the company's issued share capital.

"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 the project.

"With the proceeds allocated to completing key activities to advance Ewoyaa towards project FID, the placing puts the company on firm footing to achieve its ambitions of delivering commercial production of spodumene in Ghana,” Herbert said.