Atlantic Lithium Raises £3 Million via Placements and Issues 10 Million Warrants
Atlantic Lithium has secured £3 million through two share placements with Long State Investments, issuing new warrants and security shares to strengthen its financial footing ahead of Ghana's first lithium mine development.
- Received £1 million deferred proceeds from initial placement at a premium
- Initiated second placement to raise an additional £2 million
- Issued 10 million warrants and 10 million security shares to Long State
- Shares from second placement and security shares to begin trading on AIM
- Funding aims to minimize shareholder dilution while supporting project progress
Funding Milestones Achieved
Atlantic Lithium Limited, the company spearheading Ghana's first lithium mine, has announced a significant funding update involving its strategic partner Long State Investments Ltd. The company has received £1 million in deferred proceeds from an initial share placement, which was concluded early and at a premium due to positive share price momentum. This early closure reflects investor confidence and provides Atlantic Lithium with immediate capital to advance its operations.
Second Placement to Strengthen Financial Position
Building on this momentum, Atlantic Lithium has initiated a second placement to raise an additional £2 million through the issuance of over 19 million shares at a set price. Half of the proceeds from this placement will be paid upfront, with the remainder deferred to a later date, a structure designed to balance immediate funding needs with shareholder interests. This approach aims to bolster the company’s financial position while minimizing dilution for existing shareholders.
Warrants and Security Shares Issued
Following shareholder approval at a recent extraordinary general meeting, Atlantic Lithium has issued 10 million warrants exercisable over five years and 10 million security shares to Long State. These instruments provide Long State with additional equity participation options, aligning their interests with the company’s long-term growth prospects. The security shares, issued at nil value, come with provisions that allow the company to manage them flexibly upon expiry or termination of the equity facility.
Market Impact and Next Steps
The new shares from the second placement and the security shares are expected to be admitted to trading on the London Stock Exchange’s AIM market around 1 December 2025. This will increase the total shares on issue to over 748 million, providing a clear picture of the company’s capital structure moving forward. Atlantic Lithium’s CEO, Keith Muller, highlighted the positive share price movement and the strategic nature of the funding, emphasizing the company’s commitment to advancing the Ewoyaa Lithium Project with minimal shareholder dilution.
As Atlantic Lithium continues to develop its flagship project in Ghana, these funding arrangements with Long State Investments not only provide essential capital but also demonstrate strong investor support. The company’s ability to secure funding at a premium and structure placements with deferred payments reflects a nuanced approach to balancing growth ambitions with shareholder value preservation.
Bottom Line?
Atlantic Lithium’s latest funding moves set the stage for accelerated development, but investors will watch closely how future placements and warrant exercises impact share value.
Questions in the middle?
- How will the deferred payment structure of the second placement affect Atlantic Lithium’s cash flow and share price?
- What are the conditions or triggers for the potential two additional £2 million placements under the Share Placement Agreement?
- How might the exercise of the 10 million warrants influence future dilution and investor returns?
