Atlantic Lithium Shares Surged 33.8% Despite Corruption Claims

The Atlantic Lithium Ltd (LON: ALL) share price surged 33.8% after yesterday’s massive 40% crash after Blue Orca Capital issued a short selling report implicating the company in high-level corruption in Ghana, where it plans to construct its flagship lithium mine.

The short-selling report from Blue Orca targeted Piedmont Lithium, which had committed to investing $100 million in Atlantic Lithium to secure 50% of the offtake lithium spodumene mined at its Ewoyaa mine in Ghana. Atlantic Lithium expects Ewoyaa to become Ghana’s first lithium mine.

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Investors reacted negatively to the short-selling report, which claims that Atlantic Lithium paid and promised millions of dollars in royalty payments to a Ghanaian company secretly owned by the son of General Mosquito, a high-ranking politician, who at the time was the chairman of the Mines and Energy committee in Ghana’s Parliament.

General Mosquito’s party has since lost power, and he is now a leading figure in the opposition party. The current governing party has already revoked the mining licenses issued to a company owned by the son of the former President in a corrupt manner. 

Therefore, it is highly likely that Atlantic Lithium’s mining licenses will be revoked if there is evidence that the company bribed high-ranking politicians to acquire the licenses. While the report was focused on Piedmont Lithium, it also uncovered the massive corruption that Atlantic lithium engaged in to secure its mining licenses. 

Atlantic Lithium could face an investigation in the United Kingdom, given that it is a UK-domiciled firm. However, its future remains uncertain due to the accusations made by Blue Orca Capital. I wouldn’t buy Atlantic Lithium shares since the Ghana scandal has just emerged. 

Today, the lithium exploration and mining company issued a statement refuting all the claims made by Blue Orca Capital, saying that it holds valid Prospecting Licences with operating permits for all of its current activities under the Ghanaian government and the Minerals Commission’s requirements. 

Atlantic Lithium expressed confidence that Ghana’s Minerals Commission will approve the Mining Licence for the Ewoyaa Lithium Project, and Ghana’s Parliament will ratify the same. 

*This is not investment advice. 

The Atlantic Lithium share price chart.

The Atlantic Lithium share price surged 33.77% to trade at 30.70p, from Wednesday’s closing price of 22.95p.