Atlantic Lithium Takeover by Huayou

Company & Deal Overview

• Atlantic Lithium Ltd (AIM:ALL, ASX:A11, OTCID:ALLIF), Africa-focused lithium explorer
• Agreed to takeover by Zhejiang Huayou Cobalt, Chinese new energy materials company
• All-cash deal valued at ~$210 million

Transaction Details

• Huayou to acquire all issued shares
• 26.6% premium to Atlantic's last closing price
• 21.8% above 30-day VWAP

Strategic Focus

• Deal centres on Ewoyaa Lithium Project in Ghana
• One of Africa’s advanced hard rock lithium discoveries
• Potential supplier for EV and energy storage sectors

Board & Shareholder Position

• Atlantic’s board unanimously recommends voting in favour
• Reasons: lithium price volatility, JV complexity, financing & construction risks
• Assore International (26.4% stake) intends to vote in favour, subject to conditions

Process & Timeline

• Structured as Australian scheme of arrangement
• Requires shareholder approval in November 2026
• Completion targeted by end of 2026

Leadership Commentary

• CEO Keith Muller: Offer provides attractive, certain outcome vs. execution risks
• Chairman Chen Hongliang: Acquisition complements Huayou’s Africa battery metals operations, aligns with new energy materials strategy