Ewoyaa Lithium Project Receives EPA Permit

Rhea-AI Summary

Piedmont Lithium (Nasdaq: PLL; ASX: PLL) announced that Ghana's Environmental Protection Agency (EPA) has granted an environmental permit to the Ewoyaa Lithium Project in Ghana. This project is being developed in partnership with Atlantic Lithium Piedmont exercised its option to acquire a 22.5% interest in Ewoyaa in August 2023, as part of its staged investment agreement to earn a 50% equity interest in Atlantic Lithium's Ghanaian lithium portfolio. Piedmont's Chief Operating Officer, Patrick Brindle, described the EPA Permit as a major milestone in the project's development. The company now awaits the ratification of the mining lease and eventual construction, subject to remaining approvals and market conditions.

Positive

• Environmental permit granted for the Ewoyaa Lithium Project in Ghana
• Piedmont Lithium exercised option to acquire 22.5% interest in the project
• Potential to earn up to 50% equity interest in Atlantic Lithium's Ghanaian lithium portfolio

Negative

• Project development still subject to remaining approvals and market conditions
• Mining lease ratification pending

Insights

Environmental Policy Expert

The EPA permit for the Ewoyaa Lithium Project marks a significant milestone in Ghana's mining sector. This approval demonstrates the project's adherence to environmental standards, important for sustainable lithium extraction. However, it's important to note that this is just one step in a complex regulatory process. The next critical phase is the ratification of the mining lease, which will require scrutiny of the project's socio-economic impact and community engagement strategies. While the EPA permit is promising, investors should remain cautious as final approval and market conditions will ultimately determine the project's viability.

Mining Industry Analyst

The Ewoyaa Project's EPA permit is a positive development for Piedmont Lithium's strategic expansion. By acquiring a 22.5% stake in the project, with potential to increase to 50%, Piedmont is diversifying its lithium assets beyond North America. This move could potentially strengthen Piedmont's position in the global lithium supply chain, especially as demand for electric vehicle batteries grows. However, investors should consider the geopolitical risks associated with mining operations in Ghana and the project's eventual production timeline. The market's response will likely depend on further details about the project's economics and production capacity.

Electric Vehicle Market Specialist

The EPA permit for the Ewoyaa Project is a positive signal for the electric vehicle (EV) supply chain. As a potential new source of lithium, it could help alleviate supply concerns in the rapidly growing EV market. However, it's important to consider the project's timeline and how it aligns with projected lithium demand. The EV industry is experiencing rapid technological changes and by the time Ewoyaa reaches production, market dynamics could shift. Investors should monitor advancements in battery technology and potential alternatives to lithium-ion batteries, which could impact long-term demand for projects like Ewoyaa.

BELMONT, N.C.--(BUSINESS WIRE)-- Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL; ASX: PLL), a leading North American supplier of lithium products critical to the U.S. electric vehicle supply chain, today announced that Ghana’s Environmental Protection Agency (“EPA”) has granted an environmental permit (“EPA Permit”) to the Ewoyaa Lithium Project in Ghana. The Ewoyaa Project is being developed in partnership with Atlantic Lithium Limited (“Atlantic Lithium) (AIM:ALL, ASX:A11). In August 2023, the Company announced that it exercised its option to acquire a 22.5% interest in Ewoyaa, subject to government approvals, as part of its staged investment agreement to earn a 50% equity interest in Atlantic Lithium’s Ghanaian lithium portfolio.

The information presented in this announcement was originally released by Atlantic Lithium. Atlantic Lithium’s original announcement can be found here.

Piedmont Lithium Chief Operating Officer Patrick Brindle said the receipt of the EPA Permit marks a major milestone in the development of the Ewoyaa Project. “Our partners at Atlantic Lithium have demonstrated a strong commitment to responsible development of the Ewoyaa Project. Piedmont would like to express our gratitude to the EPA and to Atlantic Lithium for achieving this important step. We look forward to the ratification of the mining lease for the Ewoyaa Project in due course and the eventual construction of the project subject to remaining approvals and prevailing market conditions.”

The statements in the link above were prepared by, and made by, Atlantic Lithium. The disclosures are not statements of Piedmont and have not been independently verified by Piedmont. Atlantic Lithium is not subject to U.S. reporting requirements or obligations, and investors are cautioned not to put undue reliance on these statements.

About Piedmont Lithium

Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Our goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where we hold an economic interest. Our projects include our Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic Lithium (AIM: ALL; ASX: A11). We believe these geographically diversified operations help us to play a pivotal role in supporting America’s move toward energy independence and the electrification of transportation and energy storage. For more information, follow us on Twitter @PiedmontLithium and visit www.piedmontlithium.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of or as described in securities legislation in the United States and Australia, including statements regarding exploration, development, construction, production, and ramp up activities or the timing of these activities, of Sayona Mining, Atlantic Lithium and Piedmont, including regarding operating cost improvements, regulatory approvals or permits or the timing thereof, project spend, timing of completion of capital projects and the effects of such projects, timing of planned deliveries and ability to improve productivity; current plans for Piedmont’s mineral and chemical processing projects; Piedmont’s potential acquisition of an ownership interest in Ewoyaa, including financing options, the timing of final investment decisions and project spend; strategy; market cycles; lithium prices; equity values; costs of new project developments; lithium shortages; lithium market recovery; certain Company approvals, permitting, partnering and debt funding discussions; a recently completed workforce reduction; expense management and possible or assumed future financial results or financial condition. Such forward-looking statements involve substantial and known and unknown risks, uncertainties, and other risk factors, many of which are beyond our control, and which may cause actual timing of events, results, performance or achievements and other factors to be materially different from the future timing of events, results, performance, or achievements expressed or implied by the forward-looking statements. Such risk factors include, among others: (i) that Piedmont, Sayona Mining or Atlantic Lithium may be unable to commercially extract mineral deposits, (ii) that Piedmont’s, Sayona Mining’s or Atlantic Lithium’s properties may not contain expected reserves, (iii) risks and hazards inherent in the mining business (including risks inherent in exploring, developing, constructing and operating mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iv) uncertainty about Piedmont’s ability to obtain required capital to execute its business plan, (v) Piedmont’s ability to hire and retain required personnel, (vi) changes in the market prices of lithium and lithium products, (vii) changes in technology or the development of substitute products, (viii) the uncertainties inherent in exploratory, developmental and production activities, including risks relating to permitting, zoning and regulatory delays related to our projects as well as the projects of our partners in Quebec and Ghana, (ix) uncertainties inherent in the estimation of lithium resources, (x) risks related to competition, (xi) risks related to the information, data and projections related to Sayona Mining or Atlantic Lithium, (xii) occurrences and outcomes of claims, litigation and regulatory actions, investigations and proceedings, (xiii) risks regarding our ability to achieve profitability, enter into and deliver product under supply agreements on favorable terms, our ability to obtain sufficient financing to develop and construct our projects, our ability to comply with governmental regulations and our ability to obtain necessary permits, (xiv) our ability to deliver on our expense management efforts and other cost improvements expected upon completion of key capital projects as well as our future cash payments associated with these initiatives and potential future impairment charges, and (xv) other uncertainties and risk factors set out in filings made from time to time with the U.S. Securities and Exchange Commission (“SEC”) and the Australian Securities Exchange, including Piedmont’s most recent filings with the SEC. The forward-looking statements, projections and estimates are given only as of the date of this press release and actual events, results, performance, and achievements could vary significantly from the forward-looking statements, projections and estimates presented in this press release. Readers are cautioned not to put undue reliance on forward-looking statements. Piedmont disclaims any intent or obligation to update publicly such forward-looking statements, projections, and estimates, whether as a result of new information, future events or otherwise. Additionally, Piedmont, except as required by applicable law, undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Piedmont, its financial or operating results or its securities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916733621/en/

Erin Sanders

SVP, Corporate Communications & Investor Relations

T: +1 704 575 2549

E: esanders@piedmontlithium.com

Source: Piedmont Lithium

FAQ

What is the significance of the EPA Permit for Piedmont Lithium's Ewoyaa Project?

The EPA Permit is a major milestone in the development of the Ewoyaa Lithium Project in Ghana, allowing Piedmont Lithium (PLL) and its partner Atlantic Lithium to move forward with the project, subject to remaining approvals and market conditions.

What percentage stake does Piedmont Lithium (PLL) have in the Ewoyaa Lithium Project?

Piedmont Lithium (PLL) has exercised an option to acquire a 22.5% interest in the Ewoyaa Lithium Project, with the potential to earn up to a 50% equity interest in Atlantic Lithium's Ghanaian lithium portfolio.

What are the next steps for the Ewoyaa Lithium Project after receiving the EPA Permit?

The next steps for the Ewoyaa Lithium Project include awaiting the ratification of the mining lease and eventual construction, subject to remaining approvals and prevailing market conditions.

When did Piedmont Lithium (PLL) exercise its option to acquire a stake in the Ewoyaa Project?

Piedmont Lithium (PLL) exercised its option to acquire a 22.5% interest in the Ewoyaa Lithium Project in August 2023, subject to government approvals.