A brand-new lithium share has just hit the ASX boards. Here’s the lowdown

A new lithium share started trading on the ASX today under the ticker A11.

Atlantic Lithium Ltd (ASX: A11) closed at 56 cents, down 3.45% from the opening price.

Let’s take a look at this brand new lithium share in more detail.

Lithium explorer

Atlantic Lithium is a lithium explorer developing the Ewoyaa Lithium Project in Ghana, West Africa.

Atlantic Lithium’s shares opened at 58 cents after the company’s public offering of 22,850,000 shares.

The company is also listed on the AIM sub-market of the London Stock Exchange under the ticker LSE:ALL.

Atlantic is aiming to produce lithium spodumene pegmatite at the Ewoyaa Project. The company has a US$103 million funding agreement with Piedmont Lithium Inc (ASX: PLL) for the development of this project.

On Friday, Atlantic provided an exploration update on this project. The company has completed a pre-feasibility study showing “significant profitability potential”.

The company has declared a maiden ore reserve of 18.9Mt at 1.24% lithium oxide. The mine has a 12.5 year life and could generate US$4.84 billion in revenue. The capital cost estimate is US$125 million.

Atlantic Lithium has a market capitalisation of more than $345 million based on the current share price.

Management commentary

Commenting on the project and ASX listing, executive chairman Neil Herbert said:

We believe that trading on the ASX will extend the Company’s shareholder base, enable wider trading and offer greater liquidity for Atlantic Lithium shares. Lithium companies listed on the ASX have attracted significant investor interest of late.

 As such, we believe that the listing will help enable the Company to achieve a more attractive valuation in respect of its industry-leading Ewoyaa Project.

The post A brand-new lithium share has just hit the ASX boards. Here’s the lowdown appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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