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Atlas Lithium Fully Funded to First Production in 2024

Boca Raton, FL, Dec 4, 2023 – (ACN Newswire) – HIGHLIGHTS

– Command investment at a premium into Atlas Lithium and offtake agreements for Portion 1 of Atlas Lithium’s battery grade spodumene focus manufacturing had been performed with two high lithium chemical companies, Chengxin Lithium Team and Yahua Industrial Team, suppliers of lithium hydroxide to Tesla, BYD, and LG, among others. Goldman Sachs served as financial advisor to Atlas Lithium in these transactions.

– Chengxin and Yahua maintain dedicated an combination of US$50 million to Atlas Lithium with US$10 million as fairness at $29.77 per fragment (a 10% premium to contemporary VWAP) and US$40 million as non-dilutive prepayment in replace for 80% of Atlas Lithium’s Portion 1 lithium focus manufacturing.

– With these transactions, Atlas Lithium is completely funded for its estimated total CAPEX to first manufacturing of US$49.5 million.

– The accelerated manufacturing timeline will be accomplished by deploying modular DMS expertise and contracting the initial crushing and mining operations with local third occasions. The DMS plant for Portion 1 has already been designed and bought; it is being constructed at an authority facility and could well per chance presumably merely be air freighted into Brazil in 2024.

– Portion 1 annualized manufacturing targets up to 150,000 tonnes every year (“tpa”) of battery grade spodumene focus by Q4 2024, with the offtake agreements announced recently comprising 120,000 tpa in total and with every celebration receiving 60,000 tpa. Atlas Lithium’s planned Portion 2 goals to carry out greater skill to 300,000 tpa by mid-2025. Portion 2 skill stays uncommitted.

– Atlas Lithium is well positioned to turn out to be concept to be one of many ideal-quality, lowest-payment lithium producers on this planet. DMS is an environmentally sustainable expertise, and the Company’s project has exact enhance from the neighborhood where it operates.

Atlas Lithium Corporation (NASDAQ: ATLX) (“Atlas Lithium” or “Company”), a leading lithium exploration and pattern firm, is chuffed to grunt fat funding for its early revenue intention designed to enable the Company to be in manufacturing in Q4 2024. Atlas Lithium has estimated the final Portion 1 capital expenditures (“CAPEX”) to be US$ 49.5 million for the implementation of mining and manufacturing of spodumene focus at its lithium project in Brazil’s Lithium Valley. This CAPEX is now funded by the US$ 50 million secured from lithium replace leaders Yahua and Chengxin as described in this press release.

Offtake Agreements

The excessive quality of Atlas Lithium’s spodumene, extra validated by huge metallurgical take a look at work, along with the project’s amenability to delivery pit mining and straightforward dense media separation (“DMS”) processing, generated noteworthy curiosity from global occasions having a peep to invest and companion with the Company. After a process which incorporated project situation visits from more than one occasions, Atlas Lithium selected to companion with Chengxin and Yahua, two of the enviornment’s largest lithium hydroxide producers. Atlas Lithium’s battery grade spodumene focus is a product tailor-made to be ragged in chemical conversion vegetation that can process it to lithium hydroxide, the next stir in the processing of lithium in direction of eventual expend in batteries. With beautiful applied sciences, exact relationships with high-tier customers equivalent to BYD (the largest global EV maker), Tesla (the 2nd largest), and LG, among others, and a dedication to excessive-quality, sustainable lithium manufacturing, Chengxin and Yahua fragment Atlas Lithium’s vision to vitality the accelerating global transition to inexperienced energy. Furthermore, Atlas Lithium’s replace pattern team did no longer are wanting to depend on putting the Company’s product on the build market as the vagaries of such capacity are noteworthy much less economically radiant than securing shopping agreements with Tier 1 customers equivalent to Yahua and Chengxin.

Shenzhen Chengxin Lithium Team Co., Ltd (“Chengxin”) became as soon as established in 2001 and is headquartered in Chengdu, China. It is listed on the Shenzhen Stock Substitute with a market capitalization of roughly US$2.8 billion. Chengxin’s core replace is manufacturing and sales of lithium battery affords. The fundamental merchandise are lithium focus, lithium carbonate, lithium hydroxide, lithium chloride, and lithium steel. At fresh, the Company has constructed a total manufacturing skill of 72,000 hundreds lithium chemicals in Deyang and Suining. Chengxin is on the 2nd building out unusual skill of 60,000 hundreds lithium chemical project in Indonesia which became as soon as expected to be accomplished by the first half of 2024. Chengxin’s main customers embrace BYD, CATL, LG Chemical and more than a couple of replace leading enterprises.

Sichuan Yahua Industrial Team Co., Ltd (“Yahua”) became as soon as founded in 1952 and is headquartered in Chengdu, China. It is listed on the Shenzhen Stock Substitute with a market capitalization of roughly US$2.2 billion. Yahua is a assorted chemical firm engaged in the manufacturing and sale of lithium chemical merchandise among others. Yahua on the 2nd has an annual lithium chemical manufacturing skill exceeding 70,000 tons, along with industrial and battery grade lithium carbonate and lithium hydroxide. Yahua plans to expand its lithium salt manufacturing skill to over 100,000 tons by 2025. Yahua’s main customers embrace CATL, Tesla and LG Energy Choices.

Reduce Rowley, Atlas Lithium’s VP of Industry Sort, talked about, “I had the different to work with every Chengxin and Yahua in the course of my time at Galaxy Sources (now Allkem). These two companies were among the tip purchasers of product from Galaxy and integral to our success there as main offtake companions of the Mt Cattlin lithium mine in Western Australia. I am extremely happy to maintain secured their enhance for Atlas Lithium which is now poised to turn out to be the next excessive-quality lithium focus producer in Brazil’s globally famend Lithium Valley situation.”

Marc Fogassa, the Company’s CEO and Chairman, added, “I am humbled by the noteworthy curiosity more than one occasions demonstrated in Atlas Lithium. Within the raze, we opted to companion with two noteworthy companies that all of sudden and proactively pursued this likelihood to fruition. The ability to develop correct into a lithium producer with minimal dilution to shareholders is a fundamental accomplishment. Securing exact customers with premier stop-customers could be pivotal to Atlas Lithium’s ambition to develop correct into a fundamental supplier of excessive-quality lithium. This announcement thus indicators a watershed 2nd for Atlas Lithium’s pursuit of Tier 1 producer location.”

Crucial points of the agreements described in the clicking release could well also be came across on a Maintain 8-Good sufficient which the Company has filed recently with the Securities and Substitute Commission. The offtake agreements elevate a 5-365 days duration of time while taking into consideration early termination should always Atlas Lithium undergo a trade of preserve watch over transaction. The Company considers that it obtained extremely radiant pricing on the offtake agreements in consequence of the quality of its spodumene and the credibility of its team. Pricing for the periodic sales of Atlas Lithium’s battery grade spodumene focus will be calculated by a intention consistent with the payment of lithium hydroxide globally. The associated payment of lithium hydroxide is defined by historical files for the import and export pricing in China, Japan and South Korea, as sure by main cathode makers.

Early-Income Approach

With the well-delineated initial Anitta pegmatites and obvious metallurgical take a look at work results, Atlas Lithium’s technical team opted to expedite the manufacturing timeline for its 100%-owned Neves Mission. The fresh purpose of 300,000 tpa of spodumene focus output stays no longer off course for 2025 as Portion 2. Nonetheless, the Company now targets to delivery the initial manufacturing of up to 150,000 tpa of spodumene focus by Q4 2024. This accelerated manufacturing timeline will be enabled by deploying modular DMS expertise and contracting initial crushing and mining operations. The total CAPEX until the initial manufacturing and revenues is estimated at US$ 49.5 million, which comprises the modular DMS plant already bought along with all civil building and mining implementation work, and a contingency reserve.

To enable the accelerated manufacturing time table, the Company will accomplish the most of modular DMS processing vegetation, a accomplish and capacity no longer yet utilized in lithium processing in Brazil, and which enables for expedited building. Figures 1 and a pair of show the final accomplish for Atlas Lithium’s modular plant, with a focused nameplate skill of up to 150,000 tpa of spodumene focus. The main two DMS modules for Portion 1 are on the 2nd under building with an estimated shipping date to Brazil by April 2024.

Resolve 1 – Atlas Lithium’s designed modular DMS plant with a focused nameplate skill of up to 150,000 tpa of spodumene focus.

Resolve 2 – Turned around behold of Atlas Lithium’s designed modular DMS plant accomplish with a focused nameplate skill of up to 150,000 tpa of spodumene focus.

Mine pattern has also improved very a lot, with well-defined ore bodies which maintain enabled the Company to manufacture a entire mining time table. The geological modelling team has accomplished a detailed block mannequin of the initial pit speak, which has facilitated the accomplish of an optimal delivery-pit interpret by outdoors consultants. The initial mining opinion is eager on the Anitta 2 and 3 pegmatites with Resolve 3 illustrating the spoiled-fragment with an overlying pit shell for Anitta 2, the placement of the starting up delivery-pit mine. The processing plant and Anitta 2 delivery-pit format could well also be seen in Resolve 4.

Resolve 3 – Terrible-fragment with an overlying pit shell for Anitta 2, the placement of the first delivery-pit mine.

Resolve 4 – Neves Mission processing plant and Anitta 2 delivery-pit format

In parallel with its accelerated effort to delivery manufacturing in 2024, the Company continues an aggressive exploration drilling advertising campaign, with most rigs working spherical the clock. The exploration advertising campaign has no longer too long in the past printed quite a lot of promising unusual pegmatites, with relatively about a targets composed untested (Resolve 5). Underneath the technical management of James Abson, Atlas Lithium’s no longer too long in the past employed Chief Geology Officer, the Company is focused on the release of a Maiden Resource Estimate in Q1 2024, conjointly with its first Preliminary Financial Review. For the time being, obvious technical areas are being progressed to enable issuing a Definitive Feasibility Look in Q2 2024, to be designed spherical the Portion 2 manufacturing purpose of 300,000 tpa of battery grade spodumene focus.

Resolve 5 – Six unusual and promising purpose areas (designated as Aim Areas 1 via 6) inside of the Neves Mission, complementing the four confirmed pegmatite bodies with spodumene mineralization (designated as Anitta 1 via 4).

Total, the Company’s core intention stays dedicated to exact ESG principles. Atlas Lithium is eager on sustainably producing premium spodumene focus, along with plans to maximise water recycling, make expend of 100% dry stacked tailings without dams, steer clear of hazardous chemicals in flotation during the lithium concentration process, and planning to carry out the most of renewable energy sources for vitality. Moreover, the Company continues building public and non-public partnerships to spur pattern in the Jequitinhonha Valley situation and takes pride in serving as a sustainable job creator benefiting local communities.

About Atlas Lithium Corporation  

Atlas Lithium Corporation (NASDAQ: ATLX) is eager on advancing and developing its 100%-owned hard-rock lithium project in Brazil’s Lithium Valley, a famend lithium district in the speak of Minas Gerais. As well, Atlas Lithium has 100% possession of mineral rights for assorted battery and extreme metals along with nickel, uncommon earths, titanium, and graphite. The Company also owns fairness stakes in Apollo Sources Corp. (non-public firm; iron) and Jupiter Gold Corp. (OTCQB: JUPGF) (gold and quartzite).

Proper Harbor Observation

This press release incorporates ahead-having a peep statements inside of the which implies of Portion 27A of the Securities Act of 1933 and Portion 21E of the Securities Substitute Act of 1934. Forward having a peep statements are essentially based mostly mostly upon the fresh plans, estimates and projections of Atlas Lithium and its subsidiaries and are topic to inherent dangers and uncertainties which could well per chance presumably trigger precise results to change from the ahead- having a peep statements. Such statements embrace, among others, these relating to market and replace segment articulate and request and acceptance of unusual and existing merchandise; any projections of manufacturing, reserves, sales, earnings, revenue, margins or assorted financial items; any statements of the plans, suggestions and needs of administration for future operations; any statements relating to future economic conditions or efficiency; uncertainties related to conducting replace in Brazil, apart from as all assumptions, expectations, predictions, intentions or beliefs about future occasions. Therefore, it’s good to always no longer situation undue reliance on these ahead-having a peep statements. The following elements, among others, could well per chance presumably trigger precise results to change from these location forth in the ahead-having a peep statements: results from ongoing geotechnical diagnosis of projects; replace conditions in Brazil; traditional economic conditions, geopolitical occasions, and regulatory adjustments; availability of capital; Atlas Lithium’s ability to preserve its aggressive situation; manipulative attempts by rapid sellers to power down our stock payment; and dependence on key administration.

Extra dangers related to the Company and its subsidiaries are more completely discussed in the fragment entitled “Risk Components” in the Company’s Annual File and in Maintain 10-Q filed with the SEC on October 20, 2023. Please also consult with the Company’s assorted filings with the SEC, all of which are on hand at As well, any ahead-having a peep statements describe the Company’s views handiest as of recently and should always no longer be relied upon as representing its views as of any subsequent date. The Company explicitly disclaims any responsibility to interchange any ahead-having a peep statements.

Investor Members of the family:
Michael Kim or Brooks Hamilton
MZ Team – MZ North The US
+1 (949) 546-6326  

Topic: Press release summary

Source: Atlas Lithium Corporation

Sectors: Metals & Mining, Day-to-day Finance, Day-to-day Files

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