Piedmont Lithium (ASX:PLL) and Atlantic Lithium (ASX:A11) hit back at Blue Orca

Nick Sundich, March 10, 2023

Piedmont Lithium (ASX:PLL) and Atlantic Lithium (ASX:A11) have responded to a report from short-seller Blue Orca Capital.

The latter company (Atlantic) has a lithium project in Ghana that it aspires to bring into production while the former company (PLL) is a substantial shareholder of Atlantic.

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PLL and A11 think they can built Ghana’s first lithium mine, Blue Orca disagrees

PLL and A11 are hoping its Ewoyaa project can become Ghana’s first lithium mine.

A PFS was unveiled in September, outlining a 2Mtpa (million tonnes per annum) operation over 12.5 years with an initial capital investment of US$125m. At a grade of 6% lithium, this would equate to 255,000 tpa.

Blue Orca released a report yesterday, alleging that A11 obtained these licenses by making secret payments and promises of payments to the family of a high-level politician. It also said the mining licenses A11 held would not be granted in the end.

The companies refute the allegations

Both companies have responded to the claims.

A11 stated that it held valid prospecting licenses in accordance with all legal requirements and outright refuted the allegations. The company also said it believes that it would be granted a mining license in due course and that it would see legal advice to address the claims.

PLL also released a statement in which it denied the allegations and stated it was seeking legal advice.

Additionally, PLL stated that even if A11 was not granted a mining license, it would readily have alternative sources of spodumene concentrate for its Tennessee facility.