TIDMALL
RNS Number : 4635T
Atlantic Lithium Limited
15 November 2023
15 November 2023
Atlantic Lithium rejects Non-Binding Indicative Offers from
Assore
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF,
"Atlantic Lithium" or the "Company"), the African-focused lithium
exploration and development company targeting to deliver Ghana's
first lithium mine, announces that on 7 November 2023, the
Company's major shareholder Assore International Holdings Limited
("Assore") presented a conditional and non-binding offer ("NBIO")
to acquire all of the shares in the Company that it does not
already own, pursuant to a scheme of arrangement, at an offer price
of GBP 0.33 per share (A$0.63).
Following careful consideration, the NBIO was rejected by the
Atlantic Lithium independent board committee ("Atlantic IBC"),
which was established to consider the approach from Assore. The
NBIO follows an earlier approach from Assore on 2 October 2023 at
an identical offer price of GBP 0.33 per share (A$0.63; "Prior
NBIO"), that was similarly rejected by the Atlantic IBC.
Shareholders of the Company do not need to take any action in
respect of the NBIO or the Prior NBIO.
Rejected Offer Not Considered to be in the Best Interests of
Shareholders
The Atlantic IBC and its advisers gave careful consideration to
both the NBIO and Prior NBIO, and determined in each instance that
it undervalued Atlantic Lithium and, therefore, was not in the best
interests of shareholders, having regard to the near-term producer
status of the project, the status of the pending investment from
the Minerals Income Investment Fund and the positive near-term
outlook for lithium project developers.
Conditions of the Rejected NBIOs
The NBIO and Prior NBIO were both subject to a number of
conditions before they would become binding, including the Atlantic
Lithium board unanimously recommending the offer, providing
exclusive due diligence to Assore's satisfaction, Foreign
Investment Review Board approval and entry into a definitive and
mutually acceptable scheme implementation agreement.
Market Cleansing
In order for the Company to cleanse the market ahead of a
proposed issue of equity interests to the Minerals Income
Investment Fund, as well as other potential equity issues to
satisfy existing employee performance plans, Atlantic Lithium is
making this announcement to provide details of the approaches
received and rejected by the Atlantic IBC. Atlantic Lithium advises
that the relationship with Assore remains supportive and
constructive.
There is no certainty that a further proposal will be received
(from Assore or any other third party) and shareholders are
cautioned not to place undue reliance upon such a proposal
emerging. The Company remains focused on progressing its activities
to maximise value for all shareholders.
The Company will continue to keep the market informed of any
material developments in accordance with its continuous disclosure
requirements.
The Atlantic IBC appointed Canaccord Genuity Limited (Australia
and UK) as its financial adviser and HopgoodGanim Lawyers as its
legal adviser.
Commenting, Neil Herbert, Executive Chairman of Atlantic
Lithium, said :
"Assore, a major African mining company, has been a leading
investor and key contributor to the Company's success since its
listing in London in 2015. We look forward to maintaining our
strong relationship with Assore as we progress Ewoyaa towards
production."
The exchange rate used in this announcement is as follows:
GBP-AUD: 1.93
Authorised for release by the Board of Directors of Atlantic
Lithium Limited.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For any further information, please contact:
Atlantic Lithium Limited
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company Secretary)
www.atlanticlithium.com.au
IR@atlanticlithium.com.au
Tel: +61 2 8072 0640
SP Angel Corporate Finance Yellow Jersey PR Limited Canaccord Genuity Limited
LLP Charles Goodwin Financial Adviser:
Nominated Adviser Bessie Elliot Raj Khatri (UK) /
Jeff Keating atlantic@yellowjerseypr.com Duncan St John, Christian
Charlie Bouverat Tel: +44 (0)20 3004 Calabrese (Australia)
Tel: +44 (0)20 3470 9512
0470 Corporate Broking:
James Asensio
Tel: +44 (0) 20 7523
4500
============================== ============================= =============================
Notes to Editors:
About Atlantic Lithium
www.atlanticlithium.com.au
Atlantic Lithium is an AIM and ASX-listed lithium company
advancing a portfolio of lithium projects in Ghana and Côte
d'Ivoire through to production.
The Company's flagship project, the Ewoyaa Project in Ghana, is
a significant lithium spodumene pegmatite discovery on track to
become Ghana's first lithium-producing mine.
The Definitive Feasibility Study for the Project indicates the
production of 3.6Mt of spodumene concentrate over a 12-year mine
life, making it one of the top 10 largest spodumene concentrate
mines in the world.
The Project, which was awarded a Mining Lease in October 2023,
is being developed under a funding agreement with Piedmont Lithium
Inc.
Atlantic Lithium holds 509km(2) and 774km(2) of tenure across
Ghana and Côte d'Ivoire respectively, comprising significantly
under-explored, highly prospective licences.
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END
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