The Atlantic Lithium Ltd (ASX: A11) share price is having a very poor session.
At the time of writing, the ASX lithium stock is down 13% to a 52-week low of 39 cents.
Why is this ASX lithium stock tumbling?
Investors have been hitting the sell button in a panic today after the Africa-focused lithium developer confirmed that it could be subject to new mining laws in Ghana.
The companyâs flagship project is the Ewoyaa Project in Ghana. Management notes that it is a significant lithium spodumene pegmatite discovery on track to become Ghanaâs first lithium-producing mine.
What’s happening?
This morning, the company revealed that the West African nationâs government is looking to introduce a new Green Minerals Policy.
It notes that Ghanaâs Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, has spoken about the introduction of the new policy, which includes potential changes to the mining royalty rate and the stateâs carried interest in minerals projects.
In response, Atlantic Lithium said:
The Company confirms that it has been in regular discussion with Ghanaâs Minerals Commission, which is responsible for the determination and application of legislation within the mining sector, with regards to establishing a framework which is attractive for companies aiming to extract Ghanaâs natural resources, while also ensuring maximum value is delivered to Ghana and Ghanaians.
Atlantic Lithium is not in a position to disclose the nature of these discussions at this stage and will update the market with any developments when it is appropriate to do so.
Investors understandably appear concerned with the development and have been selling down the ASX lithium stock today.
And while the company âremains of the belief that it will be granted the Mining Lease required to advance the Projectâ, some investors clearly arenât sticking around to find out if that is the case.
Elsewhere, Leo Lithium Ltd (ASX: LLL) shares remain suspended from trade while it has discussions with the government of Mali.
