AIM-listed Clontarf Energy has raised £350,000 (before expenses) via the placing of, and subscription for, 437,500,000 new ordinary shares of 0.01p each in the capital of the Company, via CMC Markets UK Plc, at a price of 0.08p per Placing Share. The Placing Shares represent approx. 8.42% of the Company's issued share capital as enlarged by the Placing.
- The Placing shares will rank pari passu with the Company's existing Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such Admission will become effective on or around 8th June 2023. The issue of the Placing Shares is being satisfied from the Directors' existing authority to allot shares free of pre-emption rights.
- The net proceeds of the Placing will be used to advance Clontarf's lithium projects in Bolivia, and neighbouring countries, as well as on petroleum projects in Ghana, Australia, and elsewhere.
- Further updates on Bolivian lithium, as well as the Ghanaian and Australian projects will be issued, when appropriate.
Admission and TVR
Following the Admission of the Placing Shares, there will be a total of 5,193,326,117 Ordinary Shares in issue with each share carrying the right of one vote. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
Chairman, David Horgan, commented:
'Strong demand growth and rising, though volatile, prices are transforming the lithium business. The Board believes that projected demand for clean lithium cannot be met without South American brines, and especially Direct Lithium Extraction technology.
'Our joint venture partners, NEXT-ChemX, identified techniques that had previously purified fluids of radioactive elements through a technique mimicking the human kidney. This avoids the need for high water, or power usage, facilitating a continuous process, rather than a batch process.
'This cutting-edge extraction technology concentrates desired ions (such as Lithium+) by drawing them out of a solution (such as a brine) across a special purpose membrane. The technology is known as ion-Targeting Direct Extraction. This can work even in low concentrations.
'Working closely with the relevant authorities, under applicable laws, we are now gathering large samples, from several priority salt-lakes, for laboratory testing at our Joint Venture partner's facilities. Necessary export paperwork is being finalised, so that these brine samples can be air-freighted. Clontarf thus expects to start testing at its Joint-Venture partner's facilities shortly.
'The first phase of sample analysis will confirm past laboratory testing of synthetic brines. This process includes fine-tuning the process to facilitate large-scale pilot plant testing, which should follow successful laboratory test-work.
'A priority has been ongoing discussions with Bolivia's State Lithium Company, which is tasked with leading Bolivia's large-scale entry to international markets under the 2017 Lithium Law.
'Our Joint Venture has also agreed with the relevant titleholders to test priority brines from privately held salt-lakes in Argentina and Chile. These are also included in our joint venture with NEXT-ChemX on Direct Lithium Extraction.
'Meanwhile, the International Monetary Fund has approved a $3 Billion Extended Credit Facility Arrangement for Ghana. We understand that major creditors are finally on board. The reform package includes anti-corruption measures, and is intended to expedite the frozen ratification of oil & gas contracts, so as to deliver sustained growth.'
Source: Clontarf Energy
