Investigative reports by US-based Blue Orca and reports by US-based Business Insider and Investor Chronicles alleged Atlantic Lithium payments to Johnson Asiedu’s son Nketia for two lithium exploration sites.
According to the allegations, Atlantic Lithium obtained mining licenses in Ghana by making secret payments and promises to “the Direct family of a high-ranking Ghanaian politician, Asiedu Nketia, also known as General Mosquito”.
The company has responded to the allegations, but Kwaku Asedu Nketiah Jnr, the son of the prominent politician, has remained silent.
According to the report by Texas-based Blue Orca, Atlantic Lithium “allegedly paid and promised tens of millions of dollars in potential royalties to a company secretly owned by General Mosquito’s son, the short seller said, calling it ‘written’ evidence of corruption.”
The Business Insider Investor Chronicle He also alleged that the deal represented a major discredit to Ghana as an anti-corruption hub with the involvement of political friends.
According to the report, in 2021 Piedmont Lithium Inc acquired a stake in Atlantic Lithium, a small London-based miner, with a deal that would see Piedmont gain the ability to acquire a 50% ownership stake in Atlantic Lithium’s Ghanaian lithium portfolio.
After the deals were posted, Atlantic Lithium shares fell late Wednesday, dropping 42 percent to 21p. Shares rebounded to 28p on Thursday morning, after Atlantic said in a statement that Soren Andal, Blue Orca’s chief investment officer, was “baseless”.
Respond to reports and allegations – Atlantic lithium
The Blue Orca report damaged the reputation of Atlantic Lithium and its Ghanaian collaborators which prompted an immediate response.
The mining hope owner emphasized the fact that the terms of the deal meant that opposition politician Johnson’s son Asiedu Nketiah was unlikely to receive any payment from the 2.5 per cent equity that was part of the sale price, as well as the £280,000 from Atlantic. Involved.
In a statement released hours after the report, dated March 9, 2023, it repudiated Blue Orca’s allegations.
It says it “holds valid exploration licenses with operating permits for all of its current activities, in accordance with the requirements of the Ghanaian government and the Minerals Commission, and completely refutes the allegations of wrongdoing made in the report.”
The company said it had purchased the Salt Pond and Cape Coast exploration licenses “after appropriate due diligence”.
Atlantik Lithium added further:
“the report [from Blue Orca] Blue Orca Capital is clearly intended to benefit Blue Orca Capital, who disclosed in the same report that they are shorting and will profit if Piedmont Lithium Inc.’s share price falls.
“Atlantic Lithium cautions investors against making decisions based on the report, which it considers to be factually incorrect,” Atlantic Lithium’s response read.
“Ghana is a well-established mining jurisdiction with a robust mining framework. The company has a zero-tolerance policy on bribery and corruption, and operates in all its activities under the most stringent levels of corporate governance internationally.
“All allegations in the report have been taken seriously by the Company and are without merit. The Company will seek legal advice to address the claims made in the Report.” Also read Atlantic Lithium’s statement.
