Atlas Lithium (NASDAQ: ATLX) says it’s now fully funded to bring its US$49.5-million Das Neves lithium project in Minas Gerais, Brazil, into production by late next year.
The company will partner with Chinese backers Chengxin and Yahua, suppliers of lithium hydroxide to Tesla, BYD, and LG, and others.
Together, Chengxin and Yahua have committed a total of $50 million to Atlas, with $10 million in equity at $29.77 per share and $40 million as a non-dilutive prepayment. In exchange, they will receive 80% of Atlas Lithium’s first phase lithium concentrate production.
Atlas says a dense media separation plant for the project has already been designed and purchased. It will be air-freighted into Brazil in 2024.
The company aims to produce 150,000 tonnes of battery-grade spodumene concentrate per year, with production starting in next year’s fourth quarter. Atlas plans to expand capacity to 300,000 tonne per year by mid-2025.
Atlas holds 240 sq. km of mineral rights predominantly in Minas Gerais state. This area is also home to Sigma Lithium’s (TSXV: SGML; NASDAQ: SGML) Grota do Cirilo.
Shares of Atlas Lithium ended the day 12.6% higher at US$28 per share. The lithium developer has a market capitalization of US$300 million.
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