Atlantic Lithium, an Africa-focused lithium exploration and development company, has announced the completion of its institutional placement to raise a total of A$10m ($6.7m) at a price of A$0.23 per new share.

Under the placement, the company will issue more than 43.4 million new fully paid ordinary shares of no-par value each.

As part of the equity placing, Assore International Holdings, Atlantic Lithium's largest shareholder, has conditionally subscribed for $5m through the allotment of more than 32.7 million new shares at the issue price.

The participation of Assore and the directors is conditional on shareholder approval. If Assore's participation is approved at the upcoming annual general meeting, it will hold 30.56% of the company's issued share capital.

Proceeds from the equity placing will contribute to the funding of the company's flagship Ewoyaa Lithium Project in Ghana towards its final investment decision (FID).

The funds will be used for the optimisation and technical refinement of the Ewoyaa Definitive Feasibility Study, completion of activities associated with permitting and operating requirements before breaking ground at the project, and for working capital purposes.

Atlantic Lithium executive chair Neil Herbert said: “We are pleased to have raised A$10m in an equity placing led by the company's largest shareholder, Assore, and supported by existing, new institutional shareholders and participating directors.

“The successful placing, undertaken in a challenging market environment for lithium companies, demonstrates strong support for the project from existing and prospective shareholders.

“Assore has proven to be a hugely supportive shareholder and partner since the company's admission to AIM and, through its participation in the equity placing, has demonstrated its ongoing belief in the success of the project."

Earlier this month, Atlantic Lithium obtained a mining permit for its Ewoyaa Lithium Project in Ghana, clearing the last hurdle before construction.