Atlas Lithium Corporation announced a registered direct offering of 2.5 million shares of common stock at $4.00 per share, generating gross proceeds of approximately $10 million. The offering is expected to close on or about December 8, 2025, subject to customary closing conditions.
The capital raise is intended to accelerate the development of the company’s flagship Neves lithium project in Brazil’s Lithium Valley. The project has received an operational permit from the state of Minas Gerais and a definitive feasibility study filed in August 2025 that projects a 145 % internal rate of return and an 11‑month payback period. Once operational, the plant is expected to produce 300,000 tonnes of lithium annually.
Atlas Lithium has been burning cash, reporting a negative free‑cash‑flow of $31.57 million over the last twelve months and holding $20.98 million in cash and cash equivalents as of September 30, 2025. The new equity proceeds will be used to fund working‑capital needs, purchase critical equipment, secure permits, and support general corporate purposes, thereby strengthening the balance sheet and reducing reliance on future debt or secondary equity issuances.
The offering is being conducted under a shelf registration statement on Form S‑3 that was declared effective by the SEC on September 3, 2025. A.G.P./Alliance Global Partners is serving as the sole placement agent for the transaction. The issuance of 2.5 million new shares will dilute existing shareholders, but management views the dilution as a necessary trade‑off for securing the capital required to move the Neves project toward production.
CEO Marc Fogassa said, “We are honored to add as our newest shareholders these two premier, fundamental institutional investors. We believe that their investment strengthens our corporate profile as well as our balance sheet.” Investors noted concerns about dilution, but the capital raise is seen as a critical step toward achieving the project’s production milestones.
Prior funding for the Neves project includes a $20 million royalty deal secured in May 2023 and $40 million in non‑dilutive prepayment agreements for lithium concentrate. The company operates in a competitive environment in Brazil’s Lithium Valley, alongside peers such as Sigma Lithium and Latin Resources, and the capital raise supports its low‑cost producer thesis.
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