Leading lithium exploration and development company, Atlas Lithium Corporation (NASDAQ: ATLX), has successfully secured a total of $50 million in direct investment and non-dilutive prepayment from Chengxin Lithium Group and Yahua Industrial Group. These transactions, advised by Goldman Sachs, mark a significant milestone, fully funding Atlas Lithium for its estimated $49.5 million capital expenditures to achieve first production by Q4 2024.
Offtake Agreements with Industry Giants
Chengxin and Yahua, both prominent lithium hydroxide suppliers to major players like Tesla, BYD, and LG, have committed $50 million to Atlas Lithium, with $40 million as a non-dilutive prepayment and $10 million as equity at a 10% premium. In return, they secure 80% of Atlas Lithium’s Phase 1 lithium concentrate production.
Accelerated Production Timeline and Annual Targets
Atlas Lithium plans to utilize modular DMS technology, with the Phase 1 plant already under construction and set to be air-freighted to Brazil in 2024. The company targets an annualized production of up to 150,000 tonnes of battery-grade spodumene concentrate by Q4 2024, with Phase 2 aiming to double capacity to 300,000 tonnes by mid-2025.
Strategic Partnerships and Sustainable Practices
Chengxin and Yahua, recognized for their global lithium leadership, were chosen due to Atlas Lithium’s commitment to high-quality, sustainable lithium production. The company’s spodumene concentrate, validated by extensive metallurgical tests, is tailored for chemical conversion plants, supporting the green energy transition. The offtake agreements ensure secure purchases with Tier 1 customers.
Key Partners’ Profiles
Chengxin Lithium Group, listed on the Shenzhen Stock Exchange with a market capitalization of $2.8 billion, focuses on lithium battery materials production. Yahua Industrial Group, listed on the Shenzhen Stock Exchange with a $2.2 billion market cap, is a diversified chemical company with plans to expand its lithium salt production capacity.
Vision for Future Growth
Nick Rowley, Atlas Lithium’s VP of Business Development, emphasized the strategic significance of partnering with Chengxin and Yahua. Marc Fogassa, the CEO and Chairman, expressed pride in securing strong customers, signaling a watershed moment for Atlas Lithium’s ambition to become a significant high-quality lithium supplier.
In conclusion, Atlas Lithium’s early revenue strategy, supported by strategic investments and partnerships, positions the company as a leading, sustainable lithium producer, contributing to the global shift towards clean energy.
Source: acnnewswire.com
