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At-The-Market Raise
Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce that it has utilised its At-the-Market Subscription Agreement (ATM) with Acuity Capital (see announcements on 12 April 2024, 14 May 2024, 11 June 2024, 12 July 2024, 15 July 2024 and 2 August 2024) to raise $1,100,000 (inclusive of costs) by agreeing to issue 9,000,000 fully paid ordinary GLN.ASX shares to Acuity Capital at an issue price of $0.1222 per share.
The 9,000,000 Galan shares will be issued out of the Company’s LR7.1A capacity. The issue price of $0.1222 represents a discount of 9.3% to the 15-day VWAP of $0.1348 to Thursday 15 August 2024 (inclusive).
The funds raised will be put towards working capital. An Appendix 2A will follow.
The Galan Board has authorised this release.
Click here for the full ASX Release
This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Galan Lithium
Overview
Argentina is no stranger to lithium mining. The South American nation is one of three encompassed in the prolific Lithium Triangle, a region that holds more than half of the world’s lithium deposits. Argentina ranks third in the world in terms of lithium reserves at 2.7 million metric tons (MT), concentrating lithium operations in the provinces of Jujuy, Salta and Catamarca.
Amidst electrification and decarbonization, analysts have forecasted a global supply deficit of 89,000 tons of lithium carbonate equivalent (LCE) in 2023 and the Argentinian government aims to double down on lithium to meet the increasing demand. Argentina has committed to $7 billion worth of investment for lithium production with strong growth projected for exports at $1.1 billion in 2023.
Galan Lithium (ASX:GLN,FSX:9CH) is an Australia-based international mining development company focused on its high-quality lithium brine projects in Argentina – Hombre Muerto West and Candelas. The company also holds a highly prospective lithium project in Australia – Greenbushes South.
The company’s flagship Hombre Muerto West (HMW) project hosts some of Argentina’s highest grade and lowest impurity levels with an inventory of 8.6 million tons (Mt) contained LCE @ 859 mg/L lithium, with 4.7 Mt contained LCE @ 866 mg/L Li in the measured category. The 100-percent-owned property also leverages close proximity to Livent Corporation’s El Fenix operation and Allkem’s Sal de Vida projects.
Galan has signed a commercial agreement with the Catamarca Government supporting the grant of permits to enable the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.
Catamarca Governor Raúl Jalil and Galan Lithium Managing Director Juan Pablo Vargas de la Vega in Catamarca.
Galan’s secondary Candelas project comprises a sizable valley-filled channel with a potential indicated presence of substantially high-volume brine characteristics. The project’s maiden resource estimates stand upwards of 685 kilotons (kt) LCE, based on surveying from October 2019, and demonstrate exceptional discovery opportunities across this underexplored asset. Candelas has been rolled into Phase 4 of Galan’s targeted expansion plans, towards 60 ktpa LCE production by 2030.
Galan’s 100-percent-owned Greenbushes South Project is located in Western Australia and boasts advantageous positioning 3 kilometers south of the prolific Greenbushes lithium mine owned by Talison, Tianqi, IGO and Albermarle. Drilling of the first target was completed in July 2023. Galan is currently developing land access agreements for future drilling campaigns at Greenbushes South. An exploration license has been granted to the company for an additional key tenement, E70/4629 targeting lithium-bearing pegmatites for five years to February 2029. The tenement is approximately 260 kilometres south of Perth, the capital of Western Australia, and less than 30 kilometres south of the Greenbushes pegmatite at the Greenbushes Mine.
In 2023, Galan entered into an exclusive binding agreement with Redstone Resources to acquire 100 percent of the Camaro-Taiga-Hellcat property blocks from Infinity Stone Ventures (CSE:GEMS,GEMSF,FSE:B2I). The assets are located in the world-class James Bay Lithium Province in Quebec, collectively covering 5,187 hectares. The joint venture also includes an option to acquire 100 percent of the PAK East and PAK Southeast Lithium Project, spanning 1,415 hectares in Ontario’s Electric Avenue near Frontier Lithium’s PAK Lithium Project.
Galan has a highly experienced management team with over a century of professional expertise in the resource, finance and energy sectors. This results-oriented board and their vested interest in the company's success prime Galan for exceptional discovery potential and advanced development of its high-quality projects.
Company Highlights
- Galan Lithium is an ASX-listed company developing lithium brine projects within South America’s lithium triangle on the Hombre Muerto salar in Argentina.
- The company has two high-quality projects in the works: its flagship Hombre Muerto West (HMW) and the Candelas lithium project, both in Argentina. The two projects combined bring the company’s current total mineral resource estimate to 8.6 million tons lithium carbonate equivalent @ 859 mg/L lithium.
- HMW leverages advantageous positioning near notable mining operations, including Livent Corporation’s El Felix project and hosts exceptional high-grade lithium and low impurity resources.
- The HMW Phase 1 (5.4 ktpa LCE) execution plan is progressing well with the delivery of the first evaporation-ready pond expected in 2024, and production in H1 2025.
- The HMW Phase 2 definitive feasibility study (DFS) delivers compelling economics with 21 kilo-tons per annum (ktpa) lithium carbonate equivalent (LCE) operation at HMW, targeting a high-quality, 6 percent concentrated lithium chloride product (equivalent to 12.9 percent lithium oxide or 31.9 percent LCE) in 2026.
- Galan has signed a commercial agreement with the Catamarca Government enabling the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.
- Galan is transitioning into a major lithium project developer and remains committed to conducting fast-tracked lithium development in its prolific projects with a target production of 60 ktpa LCE from HMW and Candelas by 2030.
Key Projects
Hombre Muerto West Project
The 100-percent-owned Hombre Muerto West project is a large land property that sits on the west coast of the Hombre Muerto salar in Argentina, the second-best salar in the world for the production of lithium from brines. The property also leverages strategic positioning adjacent to notable competitors like Livent to the east.
Galan has increased HMW’s mineral resource to 8.6 Mt contained LCE @ 859 mg/L lithium (previously 7.3 Mt LCE @852 mg/L lithium), one of the highest grade resource estimates declared in Argentina. HMW’s measured resource is now at 4.7 Mt contained LCE @ 866mg/L lithium. Inclusion of the Catalina tenure adds ~1.3 Mt LCE to the HMW resource.
The pilot plant at HMW has validated the production of lithium chlorine concentrate, adding reagents to eliminate impurities, and generating a concentrate at 6 percent lithium. The plant comprises pre-concentration ponds, a lime plant, a filter press and concentration ponds.
Pilot Plant at HMW
Construction for Phase I has already commenced for 5.4 ktpa LCE production at HMW, and aims to deliver lithium chloride production in H1 2025. The fourth long-term pumping test (PBRS-03-23) results at HMW record an outstanding lithium mean grade of 981 mg/L - the highest reported grade from a production well in the Hombre Muerto Salar.
In April 2024, Galan announced 33 percent project completion with pond construction at 45 percent and project execution is advancing as planned.
A definitive feasibility study (DFS) for phase 2 shows a 20.85 ktpa LCE operation at HMW, targeting high-quality, 6 percent concentrated lithium chloride product (equivalent to 12.9 percent lithium oxide or 31.9 percent LCE) in 2026. The DFS also indicated phase 2 will deliver a post-tax NPV (8 percent) of US$2 billion, IRR of 43 percent and free cash flow of US$236 million per year. Phase 2 provides an exceptional foundation for significant economic upside in phases 3 and 4, targeting 60 ktpa LCE production by 2030.
The company has signed a binding term sheet with a wholly owned subsidiary of Glencore for offtake of up to 100 percent of its premium lithium chloride concentrate from HMW, and the offer to provide or facilitate a secured financing prepayment facility for US$70 to US$100 million, subject to conditions precedent being met.
Galan is targeting first-phase HMW lithium concentrate production in H1 2025
Galan now has 100 percent full ownership of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina. The newly secured Catalina tenure has a strong potential to significantly add to the existing HMW resource. The tenure also covers the Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar, Deseo I and Deceo II tenements.
Greenbushes South Lithium Project
The 100-percent-owned Greenbushes South lithium project is located near Perth, Western Australia, and is three kilometers south of the world-class Greenbushes lithium mine, managed by Talison Lithium. The Greenbushes South tenements can be found along the Donnybrook-Bridgetown Shear Zone geologic structure, which hosts the lithium-bearing pegmatites at the Greenbushes Lithium Mine.
Greenbushes South covers nearly 315 square kilometers, and hosts elevated pathfinder elements with well-defined anomalies adjacent to the property.
Management Team
Richard Homsany - Non-executive Chairman
Richard Homsany is an experienced corporate lawyer and has extensive board and operational experience in the resources and energy sectors. He is the executive chairman of ASX-listed uranium exploration and development company Toro Energy Limited, executive vice-president of Australia of TSX-listed uranium exploration company Mega Uranium and the principal of Cardinals Lawyers and Consultants, a boutique corporate and energy & resources law firm. He is also the chairman of the Health Insurance Fund of Australia (HIF) and listed Redstone Resources and Central Iron Ore and is a non-executive director of Brookside Energy Homsany’s past career includes time working at the Minera Alumbrera Copper and Gold mine located in the Catamarca Province, northwest Argentina.
Juan Pablo (‘JP’) Vargas de la Vega - Founder and Managing Director
Juan Pablo Vargas de la Vega is a Chilean/Australian mineral industry professional with 20 years of broad experience in ASX mining companies, stockbroking and private equity firms. JP founded Galan in late 2017. He has been a specialist lithium analyst in Australia, has also operated a private copper business in Chile and worked for BHP, Rio Tinto and Codelco.
Daniel Jimenez - Non-executive Director
Daniel Jimenez is a civil and industrial engineer and has worked for a world leader in the lithium industry, Sociedad Química y Minera de Chile, for over 28 years. He was the vice-president of sales of lithium, iodine and industrial chemicals where he formulated the commercial strategy and marketing of SQM’s industrial products and was responsible for over US$900 million worth of estimated sales in 2018.
Terry Gardiner - Non-executive Director
Terry Gardiner has 25 years’ experience in capital markets, stockbroking and derivatives trading. Prior to that, he had many years of trading in equities and derivatives for his family accounts. He is currently a director of boutique stockbroking firm Barclay Wells, a non-executive director of Cazaly Resources, and non-executive chairman of Charger Metals NL. He also holds non-executive positions with other ASX-listed entities.
María Claudia Pohl Ibáñez - Non-executive Director
María Claudia Pohl Ibáñez is an industrial civil industrial engineer with extensive experience in the lithium production industry. Until recently, she worked for world leader in the lithium industry Sociedad Química y Minera de Chile (NYSE:SQM, Santiago Stock Exchange:SQM-A, SQM-B) for 23 years, based in Santiago, Chile. During her time at SQM, she held numerous senior leadership roles including overseeing lithium planning and studies. Ibáñez brings significant lithium project evaluation and operational experience whilst joining the board at a critical juncture in Galan’s journey to becoming a significant South American lithium producer. Since leaving SQM in late 2021, Ibáñez has been managing partner and general manager of Chile-based Ad-Infinitum, a process engineering consultancy, with a specific focus on lithium brine projects under study and development, and the associated project evaluations.
Ross Dinsdale - Chief Financial Officer
Ross Dinsdale has 18 years of extensive experience across capital markets, equity research, investment banking and executive roles in the natural resources sector. He has held positions with Goldman Sachs, Azure Capital and more recently he acted as CFO for Mallee Resources. He is a CFA charter holder, has a Bachelor of Commerce and holds a Graduate Diploma in Applied Finance.
Chariot Corporation
Investor Insights
Chariot Corporation presents a unique value proposition for seasoned investors, with its strategic ownership of the largest land package for lithium exploration in the US and a portfolio of non-core assets providing significant revenue opportunities.
Overview
Chariot Corporation (ASX:CC9) is the largest landholder for lithium exploration in the US. It has a strategy to target both hardrock lithium in Wyoming and claystone lithium in Nevada and Oregon. The flagship Black Mountain project in Wyoming has shown significant mineralization with grades of up to 6.68 percent Li2O from rock chip samples. Chariot’s six other hard rock projects in Wyoming span 443 claims covering 3,585 hectares.
The second flagship project, Resurgent, has the second largest land position in the McDermitt Caldera, which hosts the two largest lithium resources discovered to date (Thacker Pass with 19.1 million tons (Mt) lithium carbonate equivalent (LCE) and McDermitt at 21.5 Mt LCE). The recent $650-million investment in Thacker Pass by General Motors indicates interest from automakers looking to secure a supply of battery raw materials. The McDermitt Caldera’s size and scale potential present an opportunity for Automotive OEMs, battery manufacturers and others to obtain large-scale supply to meet their growth plans.
The automaker's EV targets and government policies banning new internal combustion engine (ICE) car sales could propel lithium demand to 3.7 Mt by 2030, according to projections from mining giant Albemarle. This implies a CAGR of more than 20 percent between 2022 and 2030.
As the world's demand for lithium continues to grow, Chariot's exploration and development efforts in the US are well-timed and offer investors exposure to the rapidly growing lithium market.
Chariot has been actively focusing on creating value through the divestment of selected lithium assets. Four such assets have been divested so far through sale and/or option agreements with publicly listed companies. These transactions can potentially generate up to an estimated US$5.1 million in cash and stock-based consideration, in addition to future royalty payments for Chariot. The company currently has four additional projects that may be potential divestment opportunities, including Lida and Amargosa (Nevada), Mardabilla (Western Australia) and Nyamukono (Zimbabwe).
The company believes its two core projects, Black Mountain and Resurgent, represent early, prospective lithium opportunities in the United States. Chariot has completed its phase 1 drill program at the Black Mountain project consisting of nine shallow holes, drilled from a total of 1,132 metres. The company plans to recommence exploration work at Black Mountain and engage in exploration activities at its six other lithium-caesium-tantalite pegmatite projects in Wyoming. Phase 2 drilling at Black Mountain will comprise 3,000 to 4,000 metres utilizing cost-efficient, man-portable rigs as a precursor to a larger truck-mounted drilling program.Following the AU$9-million IPO, Chariot is now fully funded to execute its exploration plans over the next two years, of which nearly a significant proportion will be spent on the Black Mountain project.
Concurrently, the company plans to continue exploration activities at the Copper Mountain project, South Pass, Wyoming Regional and the Resurgent project to define targets for future drilling.
Chariot boasts a world-class team with strong track records in mining, exploration and the financial services sectors. The management has significant corporate and investment banking experience. Non-executive chairman Murray Bleach was formerly the CEO of Macquarie in North America, while the CEO, Shanthar Pathmanathan was an oil and investment banker with Macquarie and Deutsche Bank. On the geological side, Neil Stuart who is a non-executive director is a lithium industry veteran having previously founded Orocobre Ltd (which later merged with Galaxy Resources) to form Allkem Ltd, one of the largest lithium producers in the world. The exploration team is led by Dr. Edward Max Baker, a geologist with over 40 years of experience and several discoveries. He was the chief geologist at Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. The collective experience of the management team, from investment banking (with fundraising and M&A experience) to resource discoveries, will be useful in advancing the company’s core projects.
Company Highlights
- Chariot Corporation is a mineral exploration company focused on discovering and developing high-grade and near-surface lithium opportunities in the US.
- Chariot holds the largest land position for lithium exploration in the US with hard rock lithium and claystone hosted lithium exploration assets.
- The company commenced trading on the ASX in October 2023 after closing a highly sought-after and oversubscribed A$9 million initial public offering (which is in addition to AU$14.8 million being raised privately to assemble the portfolio).
- It is currently focused on its two core projects in the US: (1) the Black Mountain project, a hard rock lithium project located in Wyoming; and (2) the Resurgent project, a claystone lithium project located in Oregon and Nevada.
- Chariot also holds an exploration pipeline of six projects in Wyoming including Copper Mountain, South Pass, Tin Cup, Barlow Gap, Pathfinder and JC projects. These projects are prospective for hard rock lithium.
- The company’s portfolio includes several additional projects prospective for hard rock (Western Australia and Zimbabwe) and claystone lithium (Nevada, USA).
- Chariot also holds interests in several projects that have been either sold or conditionally divested through option agreements to publicly listed companies. Each of the divested projects are operated by a publicly listed counterparty and depending upon the particular transaction, the projects generate additional revenue for Chariot in the form of future payments and royalties.
- Chariot offers investors exposure to the nascent and rapidly growing US lithium market.
Key Projects
Black Mountain Project, Wyoming
County, approximately midway between Casper and Riverton, Wyoming. Chariot initially held a 91.9 percent stake in the project with 134 mining claims covering 878 hectares. In 2024, the company expanded the project with 218 contiguous claims resulting in a 206 percent increase in project tenure area. Black Mountain now comprises 352 claims covering 2,686 hectares of tenure which subsequently increased Chariot's ownership interests in its Wyoming lithium portfolio to 93.9 percent.
The project is well-serviced by existing roads and infrastructure. The claim area was acquired via claim staking of public land administered by the US Bureau of Land Management.
The project features large pegmatite outcrops at the surface with spodumene and tantalum mineralisation. Surface rock chip samples returned assays of up to 6.38 percent lithium oxide.
Black Mountain may represent a significant hard rock lithium opportunity in a tier-1 mining jurisdiction in the US. The asset features an excellent combination of geological factors, and a supportive regulatory regime and is located in a largely unpopulated part of Wyoming.
Resurgent Project, Nevada and Oregon
The Resurgent project is a claystone-hosted lithium project located in the McDermitt Caldera in Oregon and Nevada. The company owns a 79.4 percent stake in this project. The Resurgent project comprises 1,450 claims covering 12,128 hectares and is further subdivided into two principal claim areas, identified as ‘Resurgent North’ and ‘Resurgent East.’ Chariot has the second-largest land position in the McDermitt Caldera, which hosts two of the largest lithium mineral resources in North America, with a combined mineral resource estimate of over 40 Mt LCE - Thacker Pass at 19.1 Mt LCE and McDermitt at 21.5 Mt LCE.
The Resurgent North project targets the same sedimentary units that host Jindalee Resources' (ASX:JRL) McDermitt project with a mineral resource estimate of 21.5 Mt LCE. A surface sampling campaign at Resurgent North conducted in 2021 involving 289 samples returned values as high as 3,865 ppm lithium (over three times typical lithium claystone MRE cut-off grade). Of the 289 samples, 70 samples returned values greater than 100 ppm lithium, 20 samples returned values greater than 1,000 ppm lithium and 10 samples returned values greater than 2,000 ppm lithium.
The Resurgent East project targets the same sedimentary units that host Lithium Americas’ (NYSE:LAC) Thacker Pass lithium deposit (MRE at 19.1 Mt LCE). The similarity in geological characteristics with the two largest lithium deposits in the US further validates the potential for a large-scale high-grade lithium discovery at Resurgent.
Exploration Pipeline Projects
Besides the two core projects, the company has a pipeline of six lithium exploration projects comprising 443 claims and covering 3,585 hectares. Each of them is described below:
- Copper Mountain Project: The project is located ~80 kilometres northwest of Black Mountain in Fremont County, Wyoming. It comprises 83 mining claims covering 648 hectares. Copper Mountain has a long history of prospecting and artisanal-scale production having been historically mined for mica, feldspar, beryl, lepidolite and tantalite. The company has already identified multiple pegmatite target areas and has plans for a geochemical and ground magnetics survey in addition to geological mapping.
- South Pass Project: The project is located in Fremont County, Wyoming, and comprises 214 mining claims covering 1,750 hectares. This is a large and highly prospective project with an abundance of outcropping pegmatites that occur in swarms. The company notes the individual pegmatites at the project could range up to several hundred metres wide and several thousand metres long. There has been no prior exploration for hard rock lithium in the South Pass project area.
- Regional Wyoming Exploration Pipeline Projects: It comprises four hard rock lithium mining projects namely Tin Cup, Pathfinder, Barlow Gap and JC, comprising 146 mining claims covering 1,146 hectares.
- Barlow Gap Project: This project is located in Natrona County, Wyoming, and comprises 60 mining claims covering 501 hectares. This is an early-stage hard rock lithium exploration project with outcropping pegmatites on a northeast trend.
- Tin Cup Project: The project is located in Fremont County, Wyoming, and comprises 45 mining claims covering 376 hectares. There is a long history of exploration at The Tin Cup mining district dating back to 1907. The region has been known for small-scale mining for gold, copper and various gemstones including red jasper, ruby and jade. This is an early-stage hard rock lithium exploration project with outcropping pegmatites.
- Pathfinder Project: This is an early-stage hard rock lithium project located in Natrona County, and comprises 32 mining claims covering 234 hectares.
- JC Project: Located in Fremont County, Wyoming, the project comprises nine mining claim blocks spanning 75 hectares. This is an early-stage hard rock lithium exploration project that features several small excavation pits and outcropping pegmatite dykes.
Divestment Projects
Chariot has been actively focused on creating value via divestment of selected lithium assets in its portfolio. In total, four such assets – Halo (Chariot’s ownership 21.4 percent), Horizon (Chariot’s ownership 21.4 percent), Lithic & Mustang (ownership 21.4 percent) and the WA Lithium portfolio (Chariot was the 100 percent owner of this property prior to the sale to St George Mining Ltd) - have been divested so far through option agreements to publicly listed companies. These transactions, if the options are exercised, may generate up to an estimated US$5.1 million in gross proceeds (cash and stock-based consideration) for Chariot in addition to future royalty payments.
The company has identified four more projects for divestment: Lida project (Nevada), Amargosa project (Nevada), Nyamukono project (Zimbabwe), and Mardabilla project (Western Australia).
Management Team
Shanthar Pathmanathan – Managing Director
Shanthar Pathmanathan has 14 years of investment banking experience in the metals and mining, oil and gas and chemicals sectors. He was the CEO and managing director of Lithium Consolidated, an ASX-listed company, which had one of the largest portfolios of hard rock lithium exploration assets, globally. Before that, he held various investment roles with Deutsche Bank and Macquarie Group. He has a Bachelor of Laws from the University of Western Australia.
Frederick Forni – Executive Director
Frederick Forni is a senior finance professional with over 25 years of investment banking experience. He was a former senior managing director of Macquarie Holdings (USA) and held non-executive director roles with numerous Macquarie Group entities and GLI Finance Ltd. He holds a B.A. in economics from Connecticut College, a J.D., awarded cum laude, from Georgetown University Law Center and an LL.M. in taxation from New York University Law School.
Neil Stuart – Non-executive Director
Neil Stuart is an exploration geologist with over 40 years' of experience and is a member of The Australian Institute of Geoscientists and a Fellow of The Australasian Institute of Mining and Metallurgy. He was a founding director of Orocobre Limited, now Alkem (ASX:AKE). He has considerable experience across several commodities and was heavily involved in project delineation and acquisition in Australia, Mexico and Argentina. Over the last 20 years, he was involved with the exploration and commercial development of lithium projects. Stuart is on the board of numerous ASX-listed companies and is a graduate of the University of Melbourne (BSc.) and James Cook University (MSc.).
Dr. Edward Max Baker – Geological Consultant
Dr. Edward Max Baker is a Ph.D. geologist and a fellow of AusIMM. Baker has over 40 years of experience and has made several discoveries. Baker was chief geologist for Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. Baker was co-founder and previously a vice-president of exploration at New York Stock Exchange-listed Integra Resources (NYSE:ITRG).
Ramesh Chakrapani – Chief Strategy Officer
Ramesh Chakrapani has over 20 years of experience in the investment banking and alternative asset investing space. Of which, over 15 years were spent at The Blackstone Group where he was a managing director and a member of the Hedge Fund Solutions Special Situations Investing Group. Chakrapani has invested across a diverse set of industries, asset classes, geographies and liquidity profiles, and has represented The Blackstone Group on the boards of selected investments. He has a B.A. from Yale University.
David Bethke – Exploration Geologist
David Bethke is an exploration geologist with 6 years of experience working primarily in the Mountain West and Alaska regions of the United States, specializing in both gold and lithium deposits. During his career, he has worked closely with companies such as Jindalee and United Lithium to explore, sample, drill, and map lithium deposits hosted in both hard rock and claystone. In Alaska, he has worked in production for multiple well-known gold mining companies, including Coeur Mining and Northern Star Resources. David graduated cum laude from the University of Idaho with degrees in geology and Spanish.
Submission of ASX Listing Prospectus, Proposed Fundraising to Raise up to A$20M and Notice of General Meeting
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) ("CTL" or "the Company"), is advancing sustainable lithium projects in Chile, and is pleased to announce the formal commencement of its initial public offering of Chess Depositary Interests ("CDIs") and seeking a dual-listing on the Australian Securities Exchange (" ASX") under the same ticker as on AIM 'CTL' ("Fundraising" or "dual-listing"). The Fundraising is made pursuant to CTL's prospectus ("Prospectus"), which was lodged with the Australian Securities and Investments Commission today ("ASIC") and is available to read, subject to certain access restrictions, here: https://ctlithium.com/investors/. CTL will apply for admission to the Official List of the ASX in the coming days and such admission is expected to occur on or around 24 September 2024. Application will also be made for the admission to trading on AIM at the same time for the new shares being issued.
Information on the notice of a general meeting to be convened in connection with the Fundraising is set out at the end of this announcement ("Notice ofGM").
Highlights
· CleanTech Lithium is a leader in the exploration and development of Direct Lithium Extraction (DLE) based lithium brine projects in the key lithium producing jurisdiction of Chile, where use of DLE is strongly encouraged by the Chilean government to increase lithium production
· The Company has been listed on AIM since March 2022 where it has developed a supportive, long-term investor base
· CTL has today lodged a Prospectus for a proposed dual-listing on the ASX in conjunction with which it is intending to raise of up to A$20M
· ASX is a natural fit for CTL to dual-list and grow as its current shareholder base features Australian shareholders including Regal Funds Management at ~15%
· An Australian listing will further diversify the shareholder register and provide an additional funding avenue
· The admission to the ASX is expected to occur on or around 24 September 2024*
· CTL is posting today a circular to its shareholders setting out resolutions to be put forward at the General Meeting to be held on 2 September 2024 at 11.00am
· Application will be made for the admission to trading on AIM at the same time for the New Ordinary Shares being issued under the Fundraising
· CTL's flagship project is Laguna Verde where a pre-feasibility study is underway and is expected to be completed by end 2024, subject to satisfactory completion of the Fundraising
· In 2023 CTL completed scoping studies for Laguna Verde and the Company´s second project, Viento Andino, which showed lowest quartile operating costs and robust economics for a potential 20,000tpa lithium carbonate operation at each project
· Additional exploration upside includes the Arenas Blancas project located within the Salar de Atacama basin, the world´s largest lithium production base
· The Prospectus also contains two Competent Person's Reports which include information and data published by the Company since its AIM listing in March 2022
· CTL has a sector leading DLE pilot plant in Chile with a capacity of one tonne per month of lithium carbonate equivalent (LCE)
· The Company is on track to produce significant quantities of battery-grade lithium carbonate in the second half of 2024 for product qualification testing by potential customers
· CTL is headed by Executive Chair Steve Kesler, a 45-year mining veteran and a prominent figure in Chile´s mining industry having led Collahuasi and the expansion of Escondida to be the world's two largest copper mines and held senior roles at Rio Tinto and Billiton
*the date is indicative only and may change without notice
Statement from Executive Chair and Interim CEO Steve Kesler:
"CleanTech Lithium is positioning itself to become a leading supplier of battery-grade lithium to the growing EV and energy storage market to support the global energy transition.
"We're excited of the prospect to join the ASX which is home to many of the world's leading lithium companies. In addition to our existing AIM listing, the dual-listing in Australia will provide us with access to a broader collection of security holders and stakeholders who have a deep understanding of the lithium industry and its importance in supporting the world's ambitions for net-zero. We are looking forward to introducing CTL to the Australian market, providing Australian investors the opportunity to invest in an emerging producer of battery grade lithium from a country with an established lithium industry, an FTA with the USA and a preferential trade agreement with the EU.
"Our two core projects host, in aggregate, total resources of more than 2.7 million tonnes of LCE and we are advancing the use of DLE technology, which features much higher recovery rates and less environmental impact compared to conventional forms of lithium extraction. We are also aiming to be powered by renewable energy once in production, utilising Chile's excellent renewable energy resources including in the region of our projects.
"Harnessing DLE and renewable energy positions CTL to be a leader in a more efficient method of producing lithium in Chile, and we believe this will give us an advantage in supplying a premium lithium product to the market."
Further Information
As noted above, in connection with the Company's proposed dual-listing on the ASX, the Company's Fundraising seeks to raise a minimum of A$10 million ("Minimum Subscription") and a maximum of A$20 million (before costs), by the issue of Chess Depositary Interests ("CDIs") (each CDI represents one fully paid ordinary share of the Company ("New Ordinary Share") at an issue price of A$0.30 per CDI, together with one free attaching option exercisable at $0.375 on or before the date that is 18 months from the date of issue ("Attaching Option") for every CDI subscribed for and issued ("Public Offer").
The Fundraising is being conducted at the issue price of A$0.30 (being the equivalent to £0.1579)*, which represents a discount of approximately 7.1 per cent to the closing price per Ordinary Share on 12 August 2024. The Attaching Option at A$0.375 represents a premium of 25% to the issue price of A$0.30.
Fox Davies Capital Limited ("Fox Davies") and CLSA Australia Pty Ltd ("CLSA") are acting as joint lead managers (together being the "Joint Lead Managers") in connection with the Fundraising.
In connection with the Fundraising, Fox-Davies will be issued with options ("Fox-Davies Options") under the Prospectus. Refer to the 'Details of the fundraise' section below for further details.
CleanTech Lithium's ordinary shares ("Ordinary Shares") have been admitted to trading on London's AIM market ("AIM") since March 2022.
Investors, who qualify for participation in the offering of securities under the Prospectus, should consider the Prospectus in deciding whether to participate in the Fundraising. Investors wishing to subscribe for the CDIs and Attaching Options will need to complete the application form that will accompany the Prospectus. A copy of the Prospectus can be downloaded from CTL's website, www.ctlithium.com, subject to certain access restrictions.
The proceeds of the Fundraising are intended to be applied towards the development of the Company's suite of projects in Chile, primarily the completion of the Pre-Feasibility Study at the Laguna Verde Project and ongoing operations at the DLE pilot plant, which is producing battery-grade lithium carbonate. CTL's projects are centred in an area of northern Chile dubbed the "lithium triangle" which is shared with Argentina and Bolivia. CTL aims to become a leading producer and supplier of "green" battery-grade lithium to the Electric Vehicle and Energy Storage market by utilising advanced environmentally-sensitive processing technology powered by renewable energy.
The Directors believe that the ASX market benefits from a strong understanding of the mining industry and lithium sector with deep pools of capital available for good projects and where many of the Company's lithium peers are listed.
In particular, the Directors are of the view that the Company's proposed ASX listing will:
· Facilitate additional Australian investors' ability to trade in the Company's securities, broaden the Company's shareholder base, while also building on the strong support received from investors in Europe to date;
· Increase the Company's profile in the Australian market with increased analyst and media coverage; and
· Expose the Company to the large pool of funds available for investment in Australia, which have a significant appetite for resource companies.
The Prospectus was filed with ASIC on 13 August 2024 ("the Prospectus Date"), and ASX Admission is expected to occur on or around 24 September 2024 (the date is indicative only and may change without notice). If the ASX does not grant permission for Official Quotation within three months of the Prospectus Date (or within such longer period as may be permitted by ASIC) none of the New Ordinary Shares pursuant to the Prospectus offered in connection with the Fundraising will be issued. There is no guarantee that the Company will list on ASX or be granted approval to do so.
Use of Proceeds
The proceeds of the Public Offer will be applied towards:
• Completion of the PFS, drilling and hydrogeology works at the Laguna Verde Project;
• Hydrological and metallurgical studies and further DLE pilot plant testing;
• Community relations programme;
• Laguna Verde Project licence payment to LV Vendors; and
• Operational and corporate costs and costs of the Public Offer.
A table setting out further detail of the proposed use of funds is set out in Section 1.11 in the Prospectus.
Details of the fundraise
The Fundraising is being conducted by way of an offering a minimum of 33,333,334 CDIs (equivalent to 33,333,334 New Ordinary Shares) at an issue price of A$0.30 per CDI to raise a minimum of A$10 million (before costs) and up to a maximum of 66,666,667 CDIs (equivalent to 66,666,667 New Ordinary Shares) to raise a maximum of A$20 million (before costs). Investors will also be issued with one Attaching Option for every CDI subscribed for and issued.
The Fundraising will be open to institutional investors in various jurisdictions (including Australia and the United Kingdom) and to members of the public generally in Australia and is not available to retail investors in the UK.
The total maximum number of Ordinary Shares on issue following completion of the Fundraising on an undiluted basis is expected to be between 178,495,660 and 211,828,993 Ordinary Shares (depending on the level of take-up under the Fundraising). Further details of the rights attaching to CDIs and New Ordinary Shares is set out in Section 7.2 of the Prospectus, and the terms and conditions of the Attaching Options are set out in Section 7.10 of the Prospectus.
The Fundraising is not underwritten.
The Company has appointed Fox-Davies and CLSA as joint lead managers in connection with the Fundraising. The Joint Lead Managers will be paid certain fees and commissions in connection with the Fundraising and Fox-Davies will be issued with the Fox-Davies Options (see Section 5.3 of the Prospectus for further details).
Conditions to the Fundraising
The Fundraising is conditional upon the following events occurring:
· the Company raising the Minimum Subscription;
· ASX granting conditional approval for the Company to be admitted to the Official List of ASX (subject to such conditions as are acceptable to the Company);
· Admission to trading on AIM of the New Ordinary Shares representing CDIs pursuant to the Fundraising ("AIM Admission");
· Shareholder approval at a general meeting ("General Meeting") of the following resolutions (i) the issue of the New Ordinary Shares under the Fundraising at the General Meeting; and (ii) the amendment of the Articles to extend the exempt transfer provision (for the purposes of the disclosure of interests in Ordinary Shares) to transfers of CDIs on ASX ("ConditionalResolutions"). Further information on the General Meeting is set out in this announcement; and
· the Jersey Financial Services Commission granting its consents under (i) Article 2 of the Control of Borrowing (Jersey) Order 1958 to the issue of the Ordinary Shares underlying the CDIs; and (ii) Article 4 of the Control of Borrowing (Jersey) Order 1958 to the issue of the Attaching Options and the Fox-Davies Options ("COBO Consent").
If these conditions are not satisfied, the Fundraising will not proceed.
Settlement and dealings
Application will be made to AIM for the New Ordinary Shares to be admitted to trading on AIM. It is expected that AIM Admission will become effective on or around 16 September 2024, with ASX Admission to become effective on or around 24 September 2024.
These dates are indicative only and may change without notice. The Company (in consultation with the Joint Lead Managers) reserves the right to vary any and all of the above dates without notice, subject to the Corporations Act, the ASX Listing Rules. the AIM Rules and other applicable laws.
The New Ordinary Shares will, when issued and fully paid, rank pari passu in all respects with the Existing Ordinary Shares including the right to receive dividends and other distributions declared, made or paid after the date of their issue.
Notice of GM
The General Meeting is being held to approve the Conditional Resolutions and to renew the Company's existing share authorities. The Notice of GM and shareholder circular will be posted to shareholders today and will be made available on the Company's website at www.ctlithium.com.
The General Meeting is set to be held at CleanTech Lithium PLC, de Carteret House, 7 Castle Street, St Helier, Jersey, JE2 3BT on Monday 2 September 2024 at 11.00am.
*GBPAUD FX rate assumed at £1.00 = A$1.90
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 cleantech@celicourt.uk |
Australian Media Contacts | +61 403 322 097 / +61 435 143 716 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer.www.ctlithium.com
Extraordinary Grade Copper, Gold and Silver Assays Received
First batch rock chip assay results confirm high-grade large-scale potential of Great Bear Lake Project. Initial assays from Phoenix results include 42.6% Cu, 38.2g/t Au and 310g/t Ag
White Cliff Minerals Limited (“the Company”) is delighted to announce first batch assay results from rock chip samples taken during the maiden field program at Great Bear Lake Project (“Great Bear” or “the Project”), northern Canada. Results confirm widespread high-grade precious and base metal mineralisation associated with multiple IOCG and epithermal systems.
- Heli supported sampling programme designed initially to focus on priority areas surrounding existing airstrip infrastructure - First results received to date are for Phoenix
- Widespread, high-grade, Copper, Gold and Silver mineralisation confirmed. Phoenix is a district scale mineralised region, one of six (6) major project areas that were sampled within the Great Bear Lake Project, Northwest Territories, Canada
- Initial assays confirm historical results as well as significantly expand areas of known IOCG and epithermal mineralisation
- Mineralisation now identified along more than a 3.4km E/W structural corridor with extensive IOCG and phyllic characteristics identified along the entire length
- Better results from Phoenix include:
- A 1.1km intensely mineralised E/W structure returned impressive Copper, Gold, Silver and Cobalt results include:
- 42.60% Cu, 2.28g/t Au, 159g/t Ag, 0.36% Co (F005437)
- 39.50% Cu, 3.54g/t Au, 181g/t Ag, 0.23% Co (F005436)
- 39.50% Cu, 2.28g/t Au, 131g/t Ag, 0.20% Co (F005435)
- 3.08% Cu, 7.96g/t Au, 310g/t Ag, 0.16% Co (F005434)
- 5.70% Cu, 1.87g/t Au, 96.7g/t Ag (F005438)
- A broad outcropping 785 x 460m epithermal alteration zone returned:
- 6.31% Cu, 28.2 g/t Ag, 0.468 g/t Au, 440 ppm Co (F005688)
- 3.00% Cu, 249 g/t Ag, 0.717 g/t Au, 888 ppm Co (F005646)
- 3.64% Cu, 4.73 g/t Ag, 0.047 g/t Au (F005632)
- 2.78% Cu, 25.7 g/t Ag, 0.358 g/t Au (F005633)
- 1.76% Cu, 1.29 g/t Au, 10.1 g/t Ag (F005694)
- An additional nearby 215m N/S outcropping sulphide rich quartz vein returned high grade gold, silver and copper with best results of 38.2g/t Au, 76.5g/t Ag, 4.16% Cu (F005424) and 29.7g/t Au, 121g/t Ag, 2.55% Cu (F005426)
- A 1.1km intensely mineralised E/W structure returned impressive Copper, Gold, Silver and Cobalt results include:
- Further rock chip assays are expected from the other 6 initial project areas sampled at Great Bear expected over the coming weeks following QA/QC review and interpretation
“This initial batch of rock chip assays from Phoenix, the first project area to be sampled due to the proximity to the existing large airstrip at Great bear, has delivered outstanding initial results. Not only have we confirmed the historical results and sample locations, but we have expanded the area of known mineralisation at the project. This first success gives us great optimism regarding the other 4 project areas at Great Bear.
This remote and previously underexplored area has turned out to be a much larger metal rich hydrothermal system than previously thought. Historically seen as a series of sporadic high-grade results, this maiden mapping and sampling programme has confirmed for the first time a continuity and significant lateral extent of the known mineralisation.
Encouragingly Phoenix which is only the first of 5 project areas we have received assay results for, shows all the necessary characteristics of a major high-grade discovery with two major IOCG hydrothermal systems less than 2km apart with high grade epithermal mineralisation interspersed between these two larger areas and along a total strike length of 3.4km.”
“We anticipate continued assays over the coming month from the balance of work undertaken at Great Bear and I look forward to the release of these as they come to hand.
Importantly, this first field programme validates our strategy to pivot to the untapped resources of Canada’s far north, in the “scramble for what’s left”. As resource nationalism creates and will continue to create uncertainty over future supply lines, operating in Canada allows us to sleep at night.
We are doing what we said we would do - identifying opportunities and delivering results for shareholders and these are fantastic initial results.”
Troy Whittaker - Managing Director
Click here for the full ASX Release
This article includes content from White Cliff Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Expert: Regional Hubs Key to Breaking China's EV Supply Chain Dominance
During a presentation at Fastmarkets' annual Lithium Supply and Battery Raw Materials conference, Andy Leyland, founder of Supply Chain Insights, emphasized the need to develop more regional supply chains to lessen dependence on China, but acknowledged that this transition is being hindered by significant obstacles, including high costs, a lack of transparency and insufficient government support.
“To build out a linear supply chain, you're not just building mines, you’re not just building refineries to produce hydroxide. You also need to build the cathode capacity, you also need to build the battery capacity,” he said. “And that means encouraging a whole group of companies to make investments in different stages of the supply chain.”
Underscoring the importance of building and fortifying regional supply chains, Leyland noted that demand for lithium-ion battery cells is projected to increase at a compound annual growth rate (CAGR) of 20.2 percent in the next decade.
This demand will be led by the electric vehicle (EV) sector, which currently accounts for nearly 1 terawatt hour (TWh) of production, with that amount expected to grow to almost 5 TWh by 2035. The portable electronics and energy storage sectors will also contribute to an upward demand trend for lithium-ion batteries over the same period.
By 2035, Leyland expects all three segments to account for 7.5 TWh of production capacity.
For now, 90 to 95 percent of the cells built in the US are destined for the EV sector — according to Leyland, the market is in the second phase of a four phase EV adoption model, which has made investment precarious.
The four phases of EV adoption that Leyland described are:
- Phase 1: Global EV sales limited by supply, including production and supply chain issues.
- Phase 2: Global EV sales limited by demand. Increase in plug-in hybrid EVs / hybrids.
- Phase 3: Potential for EVs to surpass internal combustion engine vehicles on all major metrics, but market specific.
- Phase 4: Global EV sales increasingly forced by political mandates, potentially held up by Global South.
While in Phase 1 the EV market was constrained by limited supply, now the market is more limited by consumer demand, influenced by factors like charging infrastructure, range anxiety and costs.
Although there is growing interest in EVs, efforts are still needed to persuade consumers to make the switch. Leyland explained to the audience that this is partly because clear evidence about the benefits of EVs is lacking, especially regarding their range, charging speed, sticker price and lifetime cost of ownership.
“In a couple of years’ time — probably about three years from now — in European and North American markets, we actually get to a stage where it's very difficult to justify buying an internal combustion vehicle,” he said.
This shift is already happening in China and is expected to spread.
Eventually, political mandates will further restrict internal combustion vehicle sales, with targets set for around 2030 to 2040, though some of these deadlines might be delayed, said Leyland.
Regional hubs, nearshoring needed to diversify beyond China
Although EV adoption is currently in a plateau period, experts like Leyland continue to stress that now is the time to develop robust and resilient supply chains to facilitate eventual mandates and decarbonization targets.
The development of regional hubs, along with nearshoring, the process of relocating business operations to nearby countries, will help nations reduce dependence on single sources for EV battery raw materials.
However, Leyland stressed that it's not easy to invest in various stages of the supply chain simultaneously.
"It’s very difficult to do, because in the vast majority of circumstances, you don't have one company operating across the supply chain," he explained during his presentation at the Fastmarkets event.
He mentioned GM (NYSE:GM) and Tesla (NASDAQ:TSLA) as companies that have joint venture and supply deals both up and downstream, but juxtaposed them with Chinese companies like BYD (OTC Pink:BYDDF,SZSE:002594) and Ganfeng (OTC Pink:GNENF,SZSE:002460,HKEX:1772), which are integrated across the entire EV supply chain.
Although the location of minerals and metals was long ago predetermined by geology, 70 to 80 percent of the processing and manufacturing capacity for these critical materials is dominated by China.
“That is politically unacceptable in Europe, it's politically unacceptable in the US and other countries, because of the political mandates,” said Leyland, adding that western companies are having to rebuild supply chains.
By 2030, Supply Chain Insights expects to see a global hub model that can facilitate domestic EV markets.
According to Leyland and his team, “battery ecosystems” will bolster supply chain security, promote localized job growth and lower environmental impact in Europe and North America, “in spite of China’s comparative advantage.”
Lack of investment fueling potential lithium shortage
Oversupply is weighing on lithium prices and market development, but Leyland stressed the need for market participants to take a long-term vision when it comes to supply of the key battery metal.
As mentioned, the lithium-ion battery cell market is expected to expand at a CAGR of 20.2 percent over the next decade, while the lithium market will register a 14 percent CAGR.
Currently, however, Leyland sees a "huge number of challenges" for the lithium industry.
He noted that in order to keep up with projected EV growth trends, supply wil need to double every five years.
“At least 80 as-yet-unfinanced lithium extraction operations are required by 2035,” a slide from his presentation states. “Much of the pipeline of projects are struggling with financing today. A similar number of lithium refineries and expansions are also needed, also often struggling with both financing and raw material supply.”
Adding to that, Leyland said it's challenging to build large stockpiles of lithium, which exposes the market to heightened volatility. “And it looks like with the lack of investment we're seeing now, by the time we get to 2027 to 2028, potentially we're going to have another big shortage of material,” he commented.
To combat a potential shortage, lithium prices need to reach US$23,000 per metric ton, which Leyland considers the incentive price. Currently, prices for lithium carbonate are at only US$11,115.
"(Until then), there are a lot of things that governments need to do to protect the industry. Because effectively, China has an existing industry and advantage,” he explained to the Fastmarkets audience.
Leyland went on to note that western OEMs are growing increasingly concerned about their competitive position, particularly when it comes to lower-cost, lower-margin lithium-iron-phosphate (LFP) cells. However, the introduction of higher tariffs on Chinese imports by the US, and possibly Europe, is providing them some relief.
He also highlighted the importance of government support in building battery cell production capacity.
“Because you have to pay billions of dollars for the factory, it is very difficult for companies to get into the supply chain without some level of government support,” he said, noting that the US has provided some large subsidies.
In addition to giving subsidies, governments can streamline legal challenges for extractive industries, expedite permitting, support debt financing, help to consolidate the qualification processes, implement policy coordination across countries and regions and work to increase social license for extractive industries.
“We really need to work on the social license that people have for extractive industries,” he emphasized in closing. “People associate the extractive industries with fossil fuels, and they just don't have in their mind that we should be investing in mining to actually aid the energy transition.”
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
CleanTech Lithium
Investor Insight
Executing a well-defined project development strategy for its lithium assets and successfully progressing its DLE pilot plant, CleanTech Lithium is poised to become a key player in an expanding batteries market.
Overview
CleanTech Lithium (AIM:CTL,FWB:T2N,OTC:CTLHF) is a resource exploration and development company with four lithium assets with an estimated 2.72 million tons (Mt) of lithium carbonate equivalent (LCE) in Chile, a world-renowned mining-friendly jurisdiction. The company aims to be a leading supplier of ‘green lithium’ to the electric vehicle (EV) market, leveraging direct lithium extraction (DLE) – a low-impact, low-carbon and low-water method of extracting lithium from brine.
Lithium demand is soaring as a result of a rapidly expanding EV market. One study estimates the world needs 2 billion EVs on the road to meet global net-zero goals. Yet, the gap between supply and demand continues to widen. As the world races to secure new supplies of the critical mineral, Chile has emerged as an ideal investment jurisdiction with mining-friendly regulations and a skilled local workforce to drive towards a clean green economy. Chile is already the biggest supplier of copper and second largest supplier of lithium.
With an experienced team in natural resources, CleanTech Lithium holds itself accountable to a responsible ESG-led approach, a critical advantage for governments and major car manufacturers looking to secure a cleaner supply chain.
Laguna Verde is at pre-feasibility study stage, which is due to be delivered by Q4 2024. The project is targeted to be in ramp up production from 2027. Laguna Verde has a JORC resource estimate of 1.8 Mt of lithium carbonate equivalent (LCE) while Viento Andino boasts 0.92 Mt LCE, each supporting 20,000 tons per annum (tpa) production with a 30-year and 12-year mine life, respectively. The latest drilling programme at Laguna Verde finished in June 2024, results from which will be used to convert resources into reserves.
The lead project, Laguna Verde, will be developed first, after which Veinto Andino will follow suit using the design and experience gained from Laguna Verde, as the company works towards its goal of becoming a significant green lithium producer serving the EV market.
CleanTech Lithium’spilot DLE plantin Copiapó was commissioned in the first quarter of 2024. To date, the company has completed the first stage of production from the DLE pilot plant producing an initial volume of 88 cubic metres of concentrated eluate – the lithium carbonate equivalent (LCE) of approximately one tonne over an operating period of 384 hours with 14 cycles. Results show the DLE adsorbent achieved a lithium recovery rate of approximately 95 percent from the brine, with total recovery (adsorption plus desorption) achieving approximately 88 percent.
The company is carrying out the necessary environmental impact assessments in partnership with the local communities. The indigenous communities will provide valuable data that will be included in the assessments. The company also has two prospective exploration assets - the Llamara project and Salar de Atacama/Arenas Blancas project.
Llamara project is a greenfield asset in the Antofagasta region and is around 600 kilometers north of Laguna Verde and Veinto Andino. The project is located in the Pampa del Tamarugal basin, one of the largest basins in the Lithium Triangle.
Salar de Atacama/Arenas Blancas comprises 140 licenses covering 377 sq km in the Salar de Atacama basin, one of the leading lithium-producing regions in the world with proven mineable deposits of 9.2 Mt.
CleanTech Lithium is committed to an ESG-led approach to its strategy and supporting its downstream partners looking to secure a cleaner supply chain. In line with this, the company plans to use renewable energy and the eco-friendly DLE process across its projects. DLE is considered an efficient option for lithium brine extraction that makes the least environmental impact, with no use of evaporation ponds, no carbon-intensive processes and reduced levels of water consumption. In recognition, Chile’s government plans to prioritize DLE for all new lithium projects in the country.
Company Highlights
- CleanTech Lithium is a lithium exploration and development company with four notable lithium projects in Chile and a combined total resource of 2.72 million tonnes JORC estimate of lithium carbonate equivalent.
- The company leverages direct lithium extraction (DLE), an efficient method for extracting lithium brine that minimizes environmental impact and reduces production time and costs, resulting in high-quality, battery-grade lithium
- The company has completed the first stage of production from the DLE pilot plant in Copiapó, Chile producing an initial volume of 88 cubic metres of concentrated eluate, which is the lithium carbonate equivalent (LCE) of approx. one tonne, proving the company’s capacity to produce battery-grade lithium with low impurities from its Laguna Verde brine project.
- CleanTech Lithium’s flagship projects, Laguna Verde and Viento Andino, are located near existing power sources and established transport infrastructure that can support the scalability of each project.
- The company also has two greenfield exploration projects in the region: Llamara and Salar de Atacama.
- The board consists of the former CEO of Collahuasi, the largest copper mine in the world, having held senior roles at Rio Tinto and BHP. In-country experience developing major commercial projects runs through-out the team.
- CTL’s operations are underpinned by an established ESG-focused approach - a critical priority for governments introducing regulations that require a cleaner supply chain to reach net-zero targets.
- The company aims to become a leading supplier of ‘green’ lithium to the EV market through environmentally and socially sound practices across its assets and corporate culture.
Key Projects
Laguna Verde Lithium Project
The 217 sq km Laguna Verde project features a sq km hypersaline lake at the low point of the basin with a large sub-surface aquifer ideal for DLE. Laguna Verde is the company’s most advanced asset,
Project Highlights:
- Prolific JORC-compliant Resource Estimate: As of July 2023, the asset has a JORC-compliant resource estimate of 1.8 Mt of LCE at a grade of 200 mg/L lithium.
- Environmentally Friendly Extraction: The company’s asset is amenable to DLE. Instead of sending lithium brine to evaporation ponds, DLE uses a unique process where resin extracts lithium from brine, and then re-injects the brine back into the aquifer, with minimal depletion of the resources. The DLE process reduces the impact on environment, water consumption levels and production time compared with evaporation ponds and hard-rock mining methods.
- DLE Pilot Plant: The pilot DLE plant in Copiapo, commissioned in the first quarter of 2024, has produced an initial volume of 88 cubic metres of concentrated eluate, which is the lithium carbonate equivalent (LCE) of approximately one tonne further confirming the company’s capacity to produce battery-grade lithium with low impurities from its Laguna Verde brine project.
- Scoping Study: Scoping study completed in January 2023 indicated a production of 20,000 tons per annum LCE and an operational life of 30 years. Highlights of the study also includes:
- Total revenues of US$6.3 billion
- IRR of 45.1 percent and post-tax NPV8 of US$1.8 billion
- Net cash flow of US$215 million
Viento Andino Lithium Project
CleanTech Lithium’s second-most advanced asset covers 127 square kilometers and is located within 100 km of Laguna Verde, with a current resource estimate of 0.92 Mt of LCE, including an indicated resource of 0.44 Mt LCE. The company’s planned second drill campaign aims to extend known deposits further.
Project Highlights:
- 2022 Lithium Discovery: Recently completed brine samples from the initial drill campaign indicate an average lithium grade of 305 mg/L.
- JORC-compliant Estimate: The inferred resource estimate was recently upgraded from 0.5 Mt to 0.92 Mt of LCE at an average grade of 207 mg/L lithium, which now includes 0.44 million tonnes at an average grade of 221 mg/L lithium in the indicated category.
- Scoping Study: A scoping study was completed in September 2023 indicating a production of up to 20,000 tons per annum LCE for an operational life of more than 12 years. Other highlights include:
- Net revenues of US$2.5 billion
- IRR of 43.5 percent and post-tax NPV 8 of US$1.1 billion
- Additional Drilling: Once drilling at Laguna Verde is completed in 2024, CleanTech Lithium plans to commence further drilling at Viento Andino for a potential resource upgrade.
Llamara Lithium Project
The Llamara project is one of the largest greenfield basins in the Lithium Triangle, covering 605 square kilometers in the Pampa del Tamarugal, one of the largest basins in the Lithium Triangle. Historical exploration results indicate blue-sky potential, prompting the company to pursue additional exploration.
Project Highlights:
- Promising Historical Exploration: The asset has never been drilled; however, salt crust surface samples indicate up to 3,100 parts per million lithium. Additionally, historical geophysics lines indicate a large hypersaline aquifer. Both of these exploration results indicate potential for significant future discoveries.
- Close Proximity to Existing Operations: The Llamara project is near other known deposits:
- Atacama (SQM / Abarmale): 18,100 square kilometers
- Hombre (Muerto Livent): 4,000 square kilometers
- Pampa del Tamarugal (CleanTech): 17,150 square kilometers
Arenas Blancas
The project comprises 140 licences covering 377 sq km in the Salar de Atacama basin, a known lithium region with proven mineable deposits of 9.2 Mt and home to two of the world’s leading battery-grade lithium producers SQM and Albermarle. Following the granting of the exploration licences in 2024, the Cleantech Lithium is designing a work programme for the project
The Board
Steve Kesler - Executive Chairman and Interim CEO
Steve Kesler has 45 years of executive and board roles experience in the mining sector across all major capital markets including AIM. Direct lithium experience as CEO/director of European Lithium and Chile experience with Escondida and as the first CEO of Collahuasi, previously held senior roles at Rio Tinto and BHP.
Gordon Stein - Chief Financial Officer
Gordon Stein is a commercial CFO with over 30 years of expertise in the energy, natural resources and other sectors in both executive and non-executive director roles. As a chartered accountant, he has worked with start-ups to major companies, including board roles of six LSE companies.
Maha Daoudi - Independent Non-executive Director
Maha Daoudi has more than 20 years of experience holding several Board and senior-level positions across commodities, energy transition, finance and tech-related industries, including a senior role with leading commodity trader, Trafigura. Daoudi holds expertise in offtake agreements, developing international alliances and forming strategic partnerships.
Tommy McKeith - Independent Non-executive Director
Tommy McKeith is an experienced public company director and geologist with over 30 years of mining company leadership, corporate development, project development and exploration experience. He's held roles in an international mining company and across several ASX-listed mining companies. McKeith currently serves as non-executive director of Evolution Mining and as non-executive chairman of Arrow Minerals. Having worked in bulk, base and precious metals across numerous jurisdictions, including operations in Canada, Africa, South America and Australia, McKeith brings strategic insights to CTL with a strong focus on value creation.
Jonathan Morley-Kirk - Senior Independent Non-executive Director
Jonathan Morley-Kirk brings 30 years of experience, including 17 years in non-executive director roles with expertise in financial controls, audit, remuneration, capital raisings and taxation/structuring.
Investor Meet Company Webinar
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing sustainable lithium projects in Chile, announces that Executive Chairman and Interim CEO, Steve Kesler will provide a live presentation via Investor Meet Company on Tuesday 13 August 2024, 18:00 BST.
The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet CLEANTECH LITHIUM PLC via: https://www.investormeetcompany.com/cleantech-lithium-plc/register-investor
Investors who already follow CLEANTECH LITHIUM PLC on the Investor Meet Company platform will automatically be invited.
Questions can be submitted pre-event via the Investor Meet Company dashboard up until 12 August 2024, 09:00 BST, or at any time during the live presentation.
For further information contact:
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
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Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Arenas Blancas, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com
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