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Atlas Lithium secures offtake agreements with Chengxin Lithium and Yahua Industrial; fully funded to first production in 2024

Atlas Lithium, a US-based exploration company with projects in Brazil, secured key strategic partnerships with Yahua Lithium, a supplier to Tesla, and Chengxin Lithium, a supplier to BYD. Together, these companies will invest US$10 million in common shares at $29.77 per share (a 10% premium to recent VWAP) and prepay US$40 million 80% of Atlas Lithium’s Phase 1 battery-grade spodumene concentrate production.

These deals provide full financing for Atlas Lithium’s estimated CAPEX of US$49.5 million for spodumene concentrate production which is expected to begin in Q4 2024.


Project location.

Both partnerships strategically align Atlas’ lithium to Tier 1 battery customers. The agreements also include early termination clauses in case of an M&A transaction. Goldman Sachs acted as financial advisor to Atlas Lithium.

The accelerated production timeline will be achieved by deploying modular dense media separation (DMS) technology and contracting the initial crushing and mining operations with local third parties. The DMS plant for Phase 1 has already been designed and purchased; it is being constructed at an expert facility and will be air freighted into Brazil in 2024.

Phase 1 annualized production targets up to 150,000 tonnes per annum (tpa) of battery-grade spodumene concentrate by Q3 2024, with the two offtake agreements comprising 120,000 tpa in total and with each party receiving 60,000 tpa. Atlas Lithium’s planned Phase 2 aims to increase capacity to 300,000 tpa by mid-2025. Phase 2 capacity remains uncommitted.

Atlas Lithium’s battery-grade spodumene concentrate is a product tailored to be used in chemical conversion plants that will process it to lithium hydroxide, the next step in the processing of lithium towards eventual use in batteries.

The offtake agreements carry a 5-year term while allowing for early termination should Atlas Lithium undergo a change of control transaction. The price of lithium hydroxide is defined by historical data for the import and export pricing in China, Japan and South Korea, as determined by major cathode makers.

Early-revenue strategy. With the well-delineated initial Anitta pegmatites and positive metallurgical test work results, Atlas Lithium’s technical team opted to expedite the production timeline for its 100%-owned Neves Project. The original target of 300,000 tpa of spodumene concentrate output remains on track for 2025 as Phase 2. However, the company now targets to commence the initial production of up to 150,000 tpa of spodumene concentrate by Q3 2024.

To enable the accelerated production schedule, the company will utilize modular DMS processing plants, a design and approach not yet utilized in lithium processing in Brazil, and which allows for expedited construction.


Overall design for Atlas Lithium’s modular plant, with a targeted nameplate capacity of up to 150,000 tpa of spodumene concentrate. The first two DMS modules for Phase 1 are currently under construction with an estimated delivery date to Brazil by April 2024.

Mine development has also progressed significantly, with well-defined ore bodies that have enabled the company to develop a comprehensive mining schedule. The geological modeling team has completed a detailed block model of the initial pit area, which has facilitated the design of an optimal open-pit outline by outside consultants. The initial mining plan is focused on the Anitta 2 and 3 pegmatites.


Cross-section with an overlying pit shell for Anitta 2, the location of the first open-pit mine.

In parallel with its accelerated effort to commence production in 2024, the company continues an aggressive exploration drilling campaign, with most rigs operating around the clock. The exploration campaign has recently revealed several promising new pegmatites, with numerous targets still untested.

Under the technical leadership of James Abson, Atlas Lithium’s recently hired Chief Geology Officer, the company is targeting the release of a Maiden Resource Estimate in Q1 2024, conjointly with its first Preliminary Economic Assessment. In the interim, certain technical areas are being advanced to allow issuing a Definitive Feasibility Study in Q2 2024, to be designed around the Phase 2 production target of 300,000 tpa of battery-grade spodumene concentrate.



Imperial county Southern California has enough geothermal for 300,000,000 cars good to know we don't have to get it from other countries

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