Atlantic Lithium has awarded the processing plant front-end engineering design (FEED) contract for its Ewoyaa lithium project in Ghana to Primero Group.

Under the terms of the agreement, Primero will provide services to optimise the project’s flowsheet, identify long lead items, look to maximise the project’s long-term profitability, reduce execution risk and ultimately support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine, Atlantic Lithium said.

The value of the contract is $980,000; the consideration of which is to be paid in accordance with the three-stage earn- in agreement the company has with Piedmont Lithium Inc to fund the project towards production. This could see Piedmont invest up to $103 million in the project to eventually deliver a 1.5-2 Mt/y run of mine operation for a 27.5% stake in Atlantic Lithium’s Ghana portfolio.

Primero, a wholly-owned subsidiary of NRW Holdings Limited, specialises in the design, construction and operation of global resource projects. The group has extensive experience in delivering large-scale construction contracts, including in the lithium industry and in West Africa, demonstrating significant expertise, versatility and competence, Atlantic Lithium says.

Primero, the company says, has provided services for a number of lithium projects with comparable flowsheets to Ewoyaa’s, including Bald Hill (Tawana Resources), Pilgangoora (Pilbara Minerals), Finniss Lithium (Core Lithium), Mt Holland (Covalent Lithium) and Xuxa (Sigma Lithium).

Following the recent completion of the 47,000 m resource and exploration drilling program at the Ewoyaa project, Atlantic Lithium is currently working towards producing an updated mineral resource estimate (MRE), intended to be announced in the March quarter of 2023. The updated MRE will then be used to support a definitive feasibility study, expected to be completed by mid-2023.