Atlas Lithium (ATLX) - 2023 Q2 - Quarterly Report

Lithium Project Development - Atlas Lithium Corporation is focused on developing its hard-rock lithium project in Minas Gerais, Brazil, aiming to produce lithium concentrate, a key ingredient for the battery supply chain [85]. - The company plans to develop a processing facility with an annual production capacity of 300,000 tons of lithium concentrate, although there are uncertainties regarding capital resources and production capacity [86]. - The Minas Gerais Lithium Project consists of 51 mineral rights over 54,791 acres, located in a region known for lithium-bearing minerals such as spodumene and petalite [88]. - The ongoing drilling campaign at the Neves Project has resulted in significant lithium grades, including 1.57% Li2O over 13.1m and 1.40% Li2O over 15.0m [91][92]. - The Maiden Resource Report for the Neves Project is expected to be completed in Q3 2023, which will provide an updated mineral resource estimate [94]. - The company has ceased alluvial gold and diamond exploration efforts since 2018, focusing on lithium and other battery minerals [89]. Financial Performance - The company reported a net loss of $9,126,649 for the three months ended June 30, 2023, compared to a net loss of$871,016 for the same period in 2022, indicating a significant increase in losses [107]. - For the six months ended June 30, 2023, the net loss totaled $13,092,587, up from$1,402,506 in the same period of 2022, reflecting higher general and administrative expenses and exploration costs [108]. - Cash and cash equivalents as of June 30, 2023, were $20,165,214, with net working capital of$16,640,187 [109]. - Net cash provided by operating activities increased by 987% to $11,783,491 for the six months ended June 30, 2023, compared to a net cash used of$1,327,301 in the same period of 2022 [109]. Strategic Partnerships and Funding - The company entered into a Royalty Purchase Agreement with Lithium Royalty Corp. for $20,000,000, granting a 3$65 million, allowing Mitsui to purchase up to 100% of future lithium concentrate production [103]. - The company plans to construct a plant with an output capacity of 150,000 tons of lithium concentrate per year, funded in part by the Offtake Funding from Mitsui [103]. Exploration and Resource Management - The mineral rights portfolio includes approximately 71,057 acres for lithium, 52,229 acres for nickel, 30,009 acres for rare earths, 17,117 acres for titanium, and 9,663 acres for graphite, making it one of the largest portfolios for battery minerals in Brazil [87]. - Increased exploration expenses of $5,671,904 were reported due to the execution of the drilling program on the Minas Gerais Lithium Project [109]. - Atlas Lithium Corporation holds 45.11$18 million through various equity transactions in 2023, including a public offering and private placements [113].