Atlantic Lithium (ASX:A11) Sets 5 November Court Date as Huayou Cobalt Takeover Scheme Clears Foreign Investment Hurdle

Aditi Sarkar

28 October 2026 04:35 PM AEDT

Atlantic Lithium (ASX:A11) Sets 5 November Court Date as Huayou Cobalt Takeover Scheme Clears Foreign Investment Hurdle

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Highlights

Atlantic Lithium received Foreign Investment Review Board clearance for the Huayou Cobalt scheme, satisfying one condition of the deed.
Huayou offers US$0.25486 cash per share, valuing the company at about US$210m, a 26.6% premium to the 6 May close.
Huayou now holds rights to a 22.5% Ghana portfolio interest after the novation and will sole-fund up to US$66m.
Atlantic Lithium closed September with A$7.7m in cash, no debt and an estimated funding runway of 7.6 quarters.

A Ghana lithium project, a cash offer of A$0.354 a share and a courtroom date on the calendar. Atlantic Lithium (ASX:A11) has pushed its proposed takeover by Zhejiang Huayou Cobalt into the legal phase, with the first court hearing set for 5 November 2026. The scheme remains proposed rather than completed, and several gates still stand between the offer and the finish line.

The Offer on the Table

The two parties signed a Scheme Implementation Deed on 7 May 2026. Huayou would pay US$0.25486 in cash per share, equal to A$0.354 or 18.8 pence, valuing the company at about US$210m, or A$292m.

That price sits 26.6% above the 6 May 2026 closing price of A$0.280 and 21.8% above the 30-day volume-weighted average price of A$0.291. The board unanimously recommends the scheme, absent a superior proposal and provided an independent expert continues to conclude it serves shareholders' best interests.

Approvals Cleared and Pending

Australia's Treasury has confirmed it has no objection under section 75 of the Foreign Acquisitions and Takeovers Act. That satisfies one condition of the deed.

Further regulatory approvals, a shareholder vote at the scheme meeting and approval from the Supreme Court of Western Australia remain outstanding. At the 5 November hearing, the company will seek orders to convene the scheme meeting and send out the scheme booklet.

Ewoyaa Passes to Huayou

After the quarter ended, Elevra's rights under the Ewoyaa Project Agreement were novated to Huayou, which is now the joint venture partner. Ghana's Ministry of Lands and Natural Resources raised no objection to Huayou becoming a controller of the Ghana portfolio entities.

Huayou holds rights to a 22.5% interest in the portfolio and has taken on the spodumene offtake rights previously held by Elevra. Development-cost conditions precedent were deemed satisfied or waived. Huayou will sole-fund up to the remaining US$66m of a US$70m Stage 3 obligation, earning a further 27.5% interest and lifting its total to 50%, with costs shared equally thereafter.

Ewoyaa sits about 100 kilometres south-west of Accra and comprises eight main deposits. The mineral resource stands at 36.8 million tonnes at 1.24% lithium oxide, made up of 3.7 million tonnes measured, 26.1 million tonnes indicated and 7.0 million tonnes inferred. The probable ore reserve is 25.6 million tonnes at 1.22% lithium oxide. Ghana's Parliament ratified the mining lease in March 2026. No drilling results were reported in the quarter, while exploration continued on the 100%-owned Agboville and Rubino licences in Côte d'Ivoire.

Cash and Funding

Cash at 30 September 2026 was A$7.7m, down from A$9.7m at 1 July. Operating outflow was A$1.7m and investing outflow A$3.0m, after A$4.3m of exploration, feasibility and development spending was offset by A$1.0m of Elevra farm-in contributions. Equity proceeds of A$2.8m arrived during the quarter, and the company reported no debt.

Total financing facilities were A$53.5m, with A$15.3m drawn. The unused A$38.2m, or £20m, is a committed equity facility with Long State and Patras Capital, drawn at the company's discretion in tranches of up to £500,000, or up to £5m by mutual agreement. Cash plus unused facilities of A$45.9m against quarterly outgoings of A$6.0m gives an estimated runway of 7.6 quarters. The company had 801,503,291 ordinary shares on issue.

Licences and What Comes Next

Several Ghanaian prospecting licences expire on 5 and 8 November 2026. Renewals for Mankessim and Cape Coast have been submitted, and the company has no reason to believe they will not be granted. The Bewadze licence is under review by the mining department. The Mankessim mining lease, granted on 19 December 2025, runs to December 2040.

The confirmed near-term milestone is the 5 November hearing. Shareholder approval, court approval and other regulatory clearances are still to come.

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