Ghana’s Minerals Income Investment Fund (MIIF) has entered non-binding heads of terms to invest $32.9m in ASX-listed miner Atlantic Lithium and its Ghanaian subsidiaries.

The investment breakdown includes the sovereign wealth fund picking a 6% contributing stake in the Ghana portfolio of Atlantic Lithium by spending $27.9m in its Ghanian subsidiaries.

This infusion will support the development of Atlantic Lithium’s Ewoyaa lithium project and the broader Cape Coast lithium portfolio in the country.

Ewoyaa is poised to be the country’s first lithium-producing mine, which covers 560km² of land package and is located within 110km of Takoradi port and 100km of Accra.

This project is claimed to have 35.3 million tonnes (mt) at 1.25% lithium oxide (Li₂O) of mineral resource estimate and ore reserves of 25.6mt at 1.22% Li₂O. The company estimates a conservative concentrate pricing of $1,587/t.

Under the agreement, MIIF will invest in Atlantic Lithium’s subsidiaries Barari DV Ghana, Green Metals Resources Moda Minerals and Joy Transporters.

These companies own the lithium tenements in the country.

MIIF will also subscribe to 19.24 million Atlantic Lithium shares at almost $0.26 apiece, totalling $5m, gaining a 3.05% stake in the firm.

It agreed not to sell 6.5 million of Atlantic Lithium’s shares for two years from the date of issue, another 6.5 million shares for three years, and the remaining 6.2 million of its shares for four years from the date of issue.

MIIF CEO Edward Nana Yaw Koranteng said: “The Minerals Income Investment Fund of Ghana is a minerals sovereign wealth fund with an underlying objective of supporting the growth of mining in Ghana and providing a de-risking option for investors in the mining space in Ghana.

“The investment in Atlantic Lithium underscores this underlying objective and is indeed a watershed moment as this is our first investment in the lithium space globally. The Ewoyaa project is world-class, with huge prospects in the other tenements under Atlantic Lithium.

“The acquisition of a 6% contributing interest in the company’s Ghanaian subsidiaries will support the funding of ongoing capital and exploration expenditure requirements across Ewoyaa and the broader Atlantic Lithium portfolio.”