Atlas Lithium soars on Neves permit in Brazil

Atlas Lithium (NASDAQ: ATLX) has received the operational permit for its hard-rock lithium Neves project from the state of Minas Gerais in Brazil.

This permit authorizes Atlas to assemble and operate its lithium processing plant, process mined ore from one of its deposits at the facility, and sell the lithium concentrate produced, Atlas said on Monday. Once operational, annual production at Neves is projected to reach 300,000 tonnes.

Shares of Atlas Lithium jumped 34% to US$11.05 apiece in New York by early afternoon, bringing the company’s market capitalization to US$168.5 million.

“Atlas Lithium’s permit reflects 14 months of our team’s meticulous work throughout the licensing process and showcases our unwavering commitment to developing an environmentally responsible and sustainable operation in Brazil’s Lithium Valley,” Atlas CEO Marc Fogassa said in a release.

Seven clusters

The company’s plans to install a modular plant with components manufactured in South Africa. The dense media separation unit is designed to have a reduced height and physical footprint compared to others in the industry, Atlas says. It’s aiming to be environmentally sustainable and minimize water usage with recycling. The project is to employ dry stacked tailings without using dams, it said. 

Atlas’ Minas Gerais lithium project encompasses 85 mineral rights covering about 468 sq. km. It includes seven main clusters of prospective mineralization: Neves, Coronel Murta, Eastern Properties, Itinga, Salinas, Santa Clara and Tesouras.

This month the company said exploration crews at Salinas, 100 km north of Neves, discovered spodumene-rich pegmatites. In March, Japan’s Mitsui & Co. paid US$30-million to acquire a 12% stake in Atlas. 

In May last year, Atlas announced what is considered the largest lithium royalty deal in Brazil by selling a 3% gross overriding revenue royalty on the Neves project to Canada’s Lithium Royalty (TSX: LIRC) for an upfront cash consideration of US$20 million.