Atlas Lithium secures permit for Neves project
Atlas Lithium (NASDAQ: ATLX) has received the operational permit for its hard-rock lithium Neves Project from the government of the state of Minas Gerais in Brazil.
According to the company, this permit authorizes Atlas Lithium to assemble and operate its lithium processing plant, process mined ore from one of its deposits at the facility, and sell the lithium concentrate produced.
Shares of Atlas Lithium jumped 27% following the news, bringing the company’s market capitalization to $160 million.
“Atlas Lithium’s permit reflects fourteen months of our team’s meticulous work throughout the licensing process and showcases our unwavering commitment to developing an environmentally responsible and sustainable operation in Brazil’s Lithium Valley,” said Marc Fogassa, CEO of Atlas Lithium.
The Atlas Lithium Minas Gerais Lithium Project encompasses 85 mineral rights covering approximately 468 km², which include seven main clusters of prospective mineralization: Neves, Coronel Murta, Eastern Properties, Itinga, Salinas, Santa Clara, and Tesouras.
Once operational, annual lithium production at Neves is projected to reach 300,000 tonnes.
In May, Atlas announced what is considered the largest lithium royalty deal in Brazil by selling a 3% gross overriding revenue (GOR) royalty on the Neves project to Canada’s Lithium Royalty Corp. (TSX: LIRC) for an upfront cash consideration of $20 million.