Atlas Lithium (NASDAQ:ATLX) announces it has received US$50 million in funding for its early revenue strategy to allow its Neves Lithium Project to be in production towards the end of 2024.
Funding was secured from lithium industry leaders Yahua and Chengxin, which committed to US$10 million as equity at $29.77 per share (a 10% premium to recent VWAP) and US$40 million as non-dilutive prepayment in exchange for 80% of Atlas Lithium’s phase one lithium concentrate production.
The company estimates the phase one capital expenditure will be US$49.5 million for the implementation of mining and production of spodumene concentrate at its lithium project in Brazil’s Lithium Valley.
Atlas Chief Executive Officer (CEO) and Chairman Marc Fogassa says the company opted to partner with 2 ‘exceptional’ firms that rapidly and proactively pursued this opportunity to fruition.
“Securing strong customers with premier end-users is also pivotal to Atlas Lithium’s ambition to become a significant supplier of high-quality lithium.”
“Securing strong customers with premier end-users is also pivotal to Atlas Lithium’s ambition to become a significant supplier of high-quality lithium”
The company’s technical team has now opted to expedite the production timeline for the project, with the original target at 300,000 tonnes per annum (tpa) of spodumene concentrate output remaining on track for 2025 as the second phase.
However, Atlas notes it is now targeting to begin the initial production of up to 150,000tpa of spodumene concentrate by Q4 2024.
This expedited production timeline will be achieved by deploying modular DMS technology and contracting initial crushing and mining operations with local third parties.
The capex covers the modular DMS plant which has already been designed and purchased and is being constructed at an expert facility.
The plant is set to be air freighted into Brazil next year.
In parallel, Atlas is continuing an exploration drilling campaign, with most rigs operating around the clock.
Atlas Lithium is a US minerals explorer and mining company that holds mineral properties in Brazil. The Neves Project lies in the Minas Gerais region of the lithium valley in Brazil.
Images: Atlas Lithium