Zhejiang Huayou Cobalt is set to acquire all of Atlantic Lithium’s issued shares through an Australian scheme of arrangement for a cash payment of A$0.354 per share, as part of a binding scheme implementation deed.
The all-cash scheme places Atlantic Lithium’s value at around A$292m ($210m).
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This price represents a 26.6% premium over the recent closing price of A$0.280 per share and a 21.8% premium over the 30-day volume weighted average price of A$0.291 per share.
The transaction, involving a key player in the new energy materials sector, validates the potential of Atlantic Lithium’s Ewoyaa Lithium Project in Ghana.
Atlantic Lithium CEO Keith Muller said: “The Atlantic Lithium Board has undertaken a detailed evaluation of its strategic options in relation to maximising shareholder value assessed on a risk-adjusted basis and concluded that the Huayou proposal offers an attractive proposition for Atlantic Lithium shareholders, particularly when considered amid ongoing lithium price volatility, complex jurisdictional challenges, and against the timing and execution risks attached to financing, developing and operating the Ewoyaa Lithium Project under the project’s current joint venture arrangements.”
The company’s directors plan to vote their shares, representing around 1.8% of its issued shares, in favour of the scheme, assuming the conditions mentioned are met.
Assore International, holding approximately 26.4% of Atlantic Lithium’s issued shares, also intends to support the scheme, provided no superior proposal arises and an independent expert maintains the scheme is in shareholders’ best interests.
The transaction awaits standard and additional conditions including shareholder approval at a meeting scheduled for November 2026.
Herbert Smith Freehills Kramer will act as Huayou’s legal adviser in Australia.
Atlantic Lithium has engaged Canaccord Genuity as its financial adviser and HopgoodGanim Lawyers for legal advice in the country.
Atlantic Lithium is also advancing its Ewoyaa Lithium Project.
The mining lease for this project received Ghanaian parliamentary approval in March 2026.
Atlantic Lithium holds a range of lithium projects spanning 509km² in Ghana and 771km² in Côte d’Ivoire, including under-explored and promising licences.
