Atlas Lithium (NASDAQ: ATLX) Secures Game-Changing $30,000,000 Strategic Investment From Mitsui & Co.
–News Direct–
By Faith Ashmore, Benzinga
Atlas Lithium Corporation (NASDAQ: ATLX) has announced the signing of definitive investment and offtake agreements with Mitsui & Co., Ltd., a $70 billion Japanese conglomerate that boasts Warren Buffett as a major shareholder, which Atlas Lithium considers to be a strong recognition of its project and team. Importantly, Mitsui agreed to purchase $30,000,000 in common shares of Atlas Lithium at a 10% premium.
In addition to the direct investment in Atlas Lithium, Mitsui has also entered into an Offtake Agreement for 15,000 tons of lithium concentrate from Phase 1 and 60,000 tons per year for five years from Phase 2 of Atlas Lithiums upcoming production of lithium concentrate from its 100%-owned Neves Project in Brazils Lithium Valley. The strategic investment will provide immediate funding to Atlas Lithium to continue the development of their project and focus on revenue generation with the production and sale of high-quality, low-cost, and environmentally friendly lithium concentrate.
Today marks a significant milestone for Atlas Lithium as we progress towards our goal of becoming a key lithium supplier to the global EV (electric vehicle) battery materials supply chain. Mitsuis investment reflects confidence in our team, assets, and business model, shared Marc Fogassa, CEO and Chairman of Atlas Lithium. I am honored and humbled to be here in Tokyo signing this historical agreement for Atlas Lithium that will undoubtedly result in great value creation for our shareholders. I have watched the relationship of our companies grow and I believe that this partnership with Mitsui strengthens Atlas Lithium substantially, added Marc Fogassa.
Mitsui and Atlas Lithium have been working closely since entering into a Memorandum of Understanding disclosed in January 2023. Mitsui executives and technical experts have conducted multiple visits to Atlas Lithiums project to perform due diligence, and Atlas Lithiums management has visited Mitsuis offices in Brazil, the United States, Canada and Japan. The partnership marks the culmination of the mutual interest of both companies in growing Atlas Lithium.
The additional financing from Mitsui will support Atlas Lithium's development, leading to the operation of an open-pit lithium mine and spodumene concentrating facility by the fourth quarter of 2024. Mitsui has had a strong presence in Brazil since 1960 and has a long-established history of profitable mining investments in the country.
Why Is Brazilian Lithium Attracting Attention From Investors?
With the increasing global demand for lithium, the development of new lithium projects in regions with large reserves is crucial for meeting the growing needs of the electric vehicle and renewable energy industries. For many investors, Brazils Lithium Valley is shaping up to be the most promising up-and-comer given that Brazil holds what has been estimated to be the 5th largest lithium reserves in the world.
Brazil's Lithium Valley, located in the Jequitinhonha Valley in Minas Gerais state, holds significance in the global lithium market. The region is attracting attention due to its abundant lithium reserves and potential for expansion.
Brazils sources of lithium are hard rock granitic pegmatites, known for their high concentrations of lithium-containing minerals. Among these minerals, spodumene and petalite are the most valuable. Spodumene, in particular, stands out as the most economically feasible lithium source, and Brazils Lithium Valley is establishing itself as a premier global district for spodumene. This is one of the reasons mining companies like Atlas Lithium and their investors are flocking to the region.
According to Marc Fogassa, the CEO and Chairman of Atlas Lithium, the U.S. mineral exploration company is set to become the second producer of high-grade lithium concentrate in the Jequitinhonha Valley in Minas Gerais. Atlas Lithium aims to supply high-quality hard-rock spodumene from ESG-friendly production. Fogassa mentioned that the company has garnered interest from various companies in Japan, China and the U.S., prompting his trip to Asia late last year which has now resulted in the partnership with Mitsui.
Featured photo courtesy of Atlas Lithium.
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COMTEX_450223224/2655/2024-04-02T08:56:28
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