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![Galan Lithium](https://investingnews.com/media-library/galan-lithium.png?id=51569843&width=1200&height=800)
HMW Pond 1 Earthworks and Liner Installation Completed, Evaporation Process Commenced
Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to provide a further update on the progress of construction activities at its 100% owned Hombre Muerto West (HMW) Phase 1 lithium brine project, with lithium chloride production expected in H1 2025. Galan continues its steady progress in advancing its low cost, high grade HMW project to production in a timely manner.
- Pond 1 earthworks and liner installation (2.4kms in length) now completed;
- Filling of the remainder of pond 1 is currently underway; evaporation process commenced, being the first major step of Galan’s long-term production schedule
- Pond 2 earthworks construction progressing well (65% completed), liner installation to commence next week
- 9 production wells constructed offering operational flexibility; Phase 1 production only requires 6 wells
- HMW Project is a tier one project that will produce a premium high grade lithium chloride (LiCl) concentrate of 6% Li, comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE) in H1 2025
- Low all-in sustaining costs; HMW is in the 1st quartile of lithium industry’s cost curve with an initial reserve estimate of 40 years
- Operating cost of $US3,510/t LCE equates to a low Li2O equivalent operating cost of SC6 $US310/t-$US350/t; equates to solid production margins at current spot prices
- Glencore due diligence continues
As previously announced, the HMW project was separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H1 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The very positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“The completion of earthworks and the installation of liners for Pond 1 represents a significant milestone for the HMW Phase 1 construction team. Evaporation has now commenced which is the first step of the Company’s long-term production schedule for its low-cost, low-risk lithium chloride development strategy, as Galan looks to become the next lithium producer in Argentina in H1 2025.”
Construction progress at HMW (February 2024)
The brine well field is located in the same area as the HMW ponds system. The well field for Phases 1 and 2 are exclusively located in the Rana de Sal, Del Condor, Deceo III, Pata Pila, Casa del Inca III & IV, and Santa Barbara XXIV mining tenements. The HMW Project also has several tenements (including Catalina) with potential to further increase the quantity and quality of the brine resources, which may result in additional production.
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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New Drilling and Exploration Programs Launched for Critical Minerals and Gold Targets in World-Class Australian Mineral Provinces
Metals Australia Ltd (ASX: MLS) is ramping up exploration programs across Critical Minerals and gold targets on the three key projects acquired through the purchase of an 80% interest in Payne Gully Gold Pty Ltd (PGG)1.
- A series of new drilling and exploration programs have been launched, testing Critical Minerals and gold targets across three key project areas. These projects all lie along strike from major deposits in world-class mineral provinces in Western Australia and the Northern Territory (see locations, Figure 1).
- The exploration programs at these highly prospective projects, acquired through the purchase of an 80% interest in Payne Gully Gold Pty Ltd1, include:
- Initial drilling of un-tested key copper-gold target corridor at the Warrego East Copper-Gold Project within the Tennant Creek Mineral Field (TCMF) in the NT (see Figure 1), which has historically produced 25Mt @ 6.9 g/t Au and 2.8% Cu2. The granted Warrego East EL32725 lies directly east of Warrego, the largest historical mine at Tennant Creek, which produced 6.75Mt @ 1.9% Cu, 6.6 g/t Au2, and covers a fault corridor interpreted from detailed magnetics and the Company’s gravity survey that connects Warrego with the Gecko and Orlando copper-gold deposits (past production and resources 11Mt @ 2.3% Cu, 1.8 g/t Au2,3 – see Figure 2). A Mine Management Plan (MMP) has been submitted to the NT Government for approval for an extensive aircore drilling program and follow-up RC/diamond drilling across ironstone hosted copper-gold targets which have not been previously tested. The Company also has four EL applications in the TCMF, all of which sit on key mineralised corridors (see Figures 2 & 3).
- Initial drilling of lithium-pegmatite targets on the Warrambie Critical Minerals (Li, Ni-Cu-Co) Project in WA’s northwest Pilbara (see Figure 1). Warrambie is located just 10km east of the major Andover lithium discovery which has produced drilling intersections of up to 209m @ 1.42% Li2O4. Targets have been defined by detailed gravity and reprocessed magnetics imagery5 which are analogous to the Andover geophysical signature but have not previously been tested due to the presence of shallow soil cover. A Program of Work (PoW) has been submitted to the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) for approval to drill a series of aircore drilling traverses and follow-up with RC or diamond drilling across identified lithium pegmatite targets (see Figures 4 & 5). This program is expected to commence during H2 2024.
- An aeromagnetic (fixed wing) survey is underway across the granted gold tenements located along strike to the northeast of the 5Moz Big Bell gold deposit in WA’s Murchison Gold Province. (see Figures 1 & 6). The tenements cover a 50km strike length of the regional scale Chunderloo Shear Zone and regional magnetics show potential for greenstone and potentially gold-mineralised splay structures which have not been tested in areas of cover1. The detailed aeromagnetics will define these targets prior to planned aircore drilling to test bedrock targets.
Metals Australia CEO Paul Ferguson commented:
“These new exploration programs are important steps in advancing our extensive and highly prospective Critical Minerals and gold projects in WA and the NT, which are all located along strike from major deposits in world-class mineralised terranes.
High-quality drilling targets have been identified by our geological team at the Tennant Creek project, east of the high-grade Warrego copper-gold mine, and at our Warrambie project in the northwest Pilbara, which is only 10km east of the major Andover lithium discovery. We have also commenced a detailed aeromagnetic survey across a large project area located directly along strike from the 5-million-ounce Big Bell mine in WA’s Murchison district.
With exploration programs across five key projects in Australia and Canada, the second half of 2024 will be an extremely exciting period for the Company as we look to unlock the value of our portfolio.”
The target areas being tested are all located along strike from major mineral deposits (see Figure 1, below).
Figure 1: Metals Australia key Critical Minerals and gold exploration projects in world-class mineral terranes (adapted from Geoscience Australia, Australian Mineral Deposits)
Warrego East Copper-Gold Targets, Tennant Creek, NT
The Company’s Tennant Creek Project includes granted EL32725 at Warrego East and four EL applications, EL32397, EL32837, EL32410 and the more recent EL33853, located in the Tennant Creek Mineral Field (TCMF) (see Figure 2 below).
The TCMF has produced 25Mt @ 6.9 g/t gold (Au) & 2.8% copper (Cu) historically2, the equivalent of more than 8.5Moz or $20 billion worth of gold at current prices, with all production coming from deposits in outcropping areas.
Click here for the full ASX Release
This article includes content from Metals Australia Ltd, 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.
Gradiant's Water-focused Vision for DLE and Tailings Management
There are many companies vying to produce the direct lithium extraction (DLE) technology of choice, but privately owned Gradiant is one of the few that is taking a water-first approach.
Speaking with the Investing News Network (INN) at Fastmarkets' Lithium Supply and Battery Raw Materials Conference, held in Las Vegas from June 24 to 27, Anurag Bajpayee, co-founder and CEO, and Prakash Govindan, co-founder and COO, explained the company’s water-first philosophy and highlighted Gradiant’s current endeavors.
The water-focused company is the brainchild of both Bajpayee and Govindan, who founded the Boston-headquartered company while studying at MIT. Gradiant was developed to offer advanced water and wastewater treatment solutions for critical industries like mining, semiconductors, pharmaceuticals and renewable energy.
Utilizing proprietary technologies, Gradiant’s goal is to reduce water use, minimize wastewater discharge, reclaim resources and convert wastewater into freshwater. To better serve the lithium sector, the company recently spun out alkaLi, a new company focused on scaling battery-grade lithium production using its proprietary EC2 technology.
As noted on the company's website, EC2 is designed to extract, concentrate and convert lithium quickly and efficiently, reducing operational costs and environmental impact. The technology, which adapts to various lithium sources and integrates with existing infrastructure, has been successfully tested and proven commercially.
“It's a startup that benefits from over a decade of experience, and from all the funding we have raised,” said Bajpayee.
For Govindan, Gradiant’s success in the water treatment space is a natural fit for the lithium extraction sector.
“The DLE space is glorified water treatment,” he explained while speaking with INN. “Adsorption, resins, ion exchange and membranes are our bread-and-butter water treatment processes. "
Gradiant's primary water focus and proprietary technologies give alkaLi an edge, noted Bajpayee.
“I think one difference is we are a water company trying to do DLE, not a DLE company trying to do water. Because you can't just do DLE — you either have to do water, or you have to partner with water companies,” the CEO explained.
alkaLi's EC2 is a flexible, three stage system designed to process lithium from various sources, including brine, evaporation and recycling. It can be used in full or in standalone stages, integrates with existing infrastructure and offers an option to boost production with Gradiant's SmartOps AI platform.
Extracting value from wastewater
While alkaLi is lithium centric, Gradiant has a long history of aiding the mining sector in the extraction of commodities from water. “We have worked across mining applications, not just critical minerals like nickel, cobalt and lithium, but also iron ore mines, uranium mines and other sectors,” said Govindan.
In his view, the mining sector has two very specific issues. First, in lithium processing, the mineral is found in water, requiring expertise in concentration, decontamination and conversion to produce battery-grade materials. This process is also applicable to nickel, cobalt and other critical minerals.
The second issue is wastewater treatment or tailings reprocessing, such as in Chile's copper mines, where tailing ponds contain critical minerals and highly polluting wastewater. The technology Gradiant has developed can reclaim valuable minerals while recycling wastewater into fresh water for industrial use.
Pointing to Chile's Atacama province, where water scarcity is a prominent issue, Govindan noted that as much as 60 percent of the potable water in the region is used for mining applications.
“When we recover and reuse that wastewater to the extent of 90 percent, we can reduce that 60 percent all the way down to 6 percent,” he said. “So it's a huge environmental impact, water sustainability impact.”
According to a 2023 article published in the journal "Science of the Total Environment," tailings reprocessing can reduce the amount of tailings that need to be stored, minimize the greenhouse gas emissions associated with new mining and supply approximately 2 percent of the EU’s future copper demand.
Govindan highlighted a nickel project in Australia, where the company was brought in to recover 20 percent of the nickel that wasn't recovered during processing, leading to losses in wastewater.
Gradiant proposed a solution to recover much of the lost nickel, significantly boosting the project's profitability.
Targeting tailings can also produce industrial water for reuse, as the Gradiant executives pointed out. Additionally, as Bajpayee noted, the processes used by Gradiant and alkaLi not only produce reusable water, but can also recover salt and other minerals, resulting in “true zero-discharge projects.”
Junior-focused business model
Being able to recover lost minerals while reusing water can lead to significant cost savings.
“Instead of selling the equipment and walking away, we will put it at the site and operate the equipment. The owner pays us per liter of water we produce, per tonne of lithium we produce, which really helps the juniors,” said Govindan.
“(Juniors) are in a capital-intensive industry, and when prices are US$12,000 per tonne for lithium, they're not able to raise capital. Then there is Gradiant, the only unicorn in the water tech space. We have an excellent balance sheet; also we are able to raise debt and equity capital, which we can use to help them by putting the equipment ourselves.”
EC2’s modular design makes it easy and fast to set up, which is another plus for junior miners looking to take advantage of future market trends quickly. “Two things are very important in terms of product philosophy for us (and) for lithium especially: productization and digitalization. The EC2 technology is very modular and it's very digital,” said Govindan.
“We have artificial intelligence; we have a SmartOps platform we developed for water treatment, but is lithium applicable. So we are able to provide highly modular, highly digitalized solutions.”
For companies looking to produce lithium hydroxide instead of carbonate, a simple converter can be implemented that converts carbonate to hydroxide, the executives explained.
Being a bespoke water-first company also makes the technologies developed by Gradiant versatile.
“Using variable brines is something that actually comes quite naturally to us,” said Bajpayee. “And the ability to customize solutions makes it also widely applicable, whether it's South America, the US or Australia.”
Aside from designing water solutions for industries like mining, Gradiant has developed technologies to target perfluoroalkyl and polyfluoroalkyl substances (PFAS), also known as forever chemicals.
Gradiant's ForeverGone is a comprehensive solution for permanently eliminating PFAS. Unlike current technologies that only transfer PFAS waste, ForeverGone uses micro-foam fractionation to concentrate PFAS, as well as a destruction engine for electro-oxidation to completely destroy the chemicals.
This process ensures water meets or exceeds US Environmental Protection Agency standards, offering an efficient, cost-effective and sustainable method for PFAS removal.
“(The goal is) to build an impact that will outlast you. That's the ultimate measure of success,” said Bajpayee.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Jindalee Lithium Limited (ASX: JLL) – Reinstatement to Quotation
Description
The suspension of trading in the securities of Jindalee Lithium Limited (‘JLL’) will be lifted immediately, following the release by JRL of an announcement regarding a capital raising.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Jindalee Lithium 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.
Obeikan Group Executes Shareholder Agreement for Hydroxide Plant in Kingdom of Saudi Arabia
European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company), is pleased to announce that Obeikan Group for Investment Company (Obeikan Group) has executed the Shareholders Agreement.
HIGHLIGHTS
- Obeikan Group has agreed to a Deed of Assignment and entered into the Shareholder Agreement for the development and operation of the plant;
- Work is progressing with incorporation of the joint venture company, Arabian New Energy.
- Arabian New Energy shall be incorporated after successful registration and approval by the KSA Regulatory Authorities.
- The 50%/50% JV will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from Wolfsberg.
- Under the Shareholders agreement, the newly established Arabian New Energy company (Arabian New Energy) seek to have an exclusive right to purchase spodumene mined from the current resource at Wolfsberg (Zone 1), and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on the Company’s binding Long Term Supply Agreement with BMW (refer ASX announcement dated 21 December 2022).
- Under the Shareholders Agreement, and subject to the successful commissioning of the Plant, the Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the JV company over the life of the current resources of the Wolfsberg mine at a reduced rate, with a floor and ceiling price subject to final agreement of the parties.
- The parties will establish a Development Committee for the purpose of jointly collaborating on all key decisions in relation to the development of the Plant.
- Once Critical Metals Corp (CRML) has signed the Deed of Assignment (refer ASX announcement dated 2 June 2023) and the Shareholders Agreement, both agreements will become binding on all parties.
Tony Sage, Executive Chairman of EUR said:“This is another huge milestone for the Wolfsberg project following on from the recent $US15m commitment made by BMW. We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide. Now after these key milestones have been achieved the next steps become a lot easier. Over the next two quarters we expect to finalize the updated DFS on the now separated projects and secure the necessary funding to commence construction. The Board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organized from within Saudi Arabia”.
Click here for the full ASX Release
This article includes content from European 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.
PFS Plant Location Study Results in Decision to Locate Carbonation Plant in Mining Centre of Copiapó
CleanTech Lithium PLC (AIM: CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing sustainable lithium projects in Chile, announces the results of a plant location study completed as part of the ongoing pre-feasibility study (PFS) for the Laguna Verde Project, which is due to complete later this year. The PFS is being led by Worley, a global professional services company of energy, chemicals and resources experts, from its Santiago office which has high-level experience in the lithium sector. Xi´an Lanshen New Material Technology Company ("Lanshen") has been selected to provide the lithium processing plant design and equipment, and Worley to design the balance of plant and infrastructure.
Highlights:
- A plant location study was completed by Worley, which evaluated the optimal plant location configuration for the Laguna Verde project, based on a capacity of 20,000 tonnes per annum of battery grade lithium carbonate equivalent (LCE)
- This provided a trade-off analysis between locating the entire plant at Laguna Verde versus splitting plant facilities between Laguna Verde and the nearby mining centre of Copiapó
- The option of locating the DLE plant and eluate concentration stages at the Laguna Verde site, and the carbonation plant at Copiapó is highly favourable, resulting in the decision to proceed with this option
- A concentrated eluate with 6% lithium, the maximum concentration before lithium salts begin to precipitate, will be transported to Copiapó for impurity removal and carbonation stages
- This configuration results in a minor increase in volumes transported while taking advantage of Copiapó's well-developed infrastructure and better access to a skilled workforce
- According to the Lanshen plant design, approximately 70% of the operational workforce will be employed at the carbonation plant, locating it in Copiapó provides major advantages in hiring a local work force including diversity outcomes such as greater female participation, while contributing to the local economy
- The footprint at the project site, which is at 4300m above sea level, will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts
- The carbonation plant in Copiapó would eventually be expanded to also treat concentrated eluate from the Viento Andino project
- The PFS, now due for completion before the end of Q4 this year, will include updated capex and opex estimates and will further determine the optimal production development strategy
Steve Kesler, Executive Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"We undertook a plant location study as part of our ongoing PFS for the Laguna Verde project resulting in the decision to locate the DLE and eluate concentration stages at the project site, and the carbonation plant in Copiapó. This will have various benefits such as reducing the footprint and impacts at Laguna Verde, and taking advantage of existing infrastructure, power supply and skilled workforce in Copiapó. The plant at Copiapó can then be expanded to treat material from our Viento Andino project and potentially others. The decision on plant configuration will feed directly into the wider PFS which is due to be completed later this year."
Further Information
The Company engaged Worley, utilising its local Santiago based office, to undertake the PFS for the Laguna Verde project, and selected Lanshen as designer and supplier of the entire DLE processing plant. Worley recently performed various trade-off or options studies to consider the most favourable configuration of the project and a plant location option study which assessed three scenarios for location of the plant, of which two of the scenarios, labelled Scenario 1 and Scenario 3 in the report, provided the relevant trade-off comparison:
- Scenario 1: Locating the entire plant based at the Laguna Verde project site
- Scenario 3: Locating DLE and eluate concentration stages at the project site, and the impurity removal and carbonation (downstream plant) at Copiapó
Laguna Verde is connected to Copiapó via a 270km paved international highway, as shown in Figure 1. Copiapó is a major regional mining centre in Chile with a population of 175,000, having well established infrastructure, a skilled workforce, and existing supply hubs for reagents and other materials. While basing the entire plant at the project site is feasible and most lithium projects in the lithium triangle are proceeding on such a basis, the good transport link and relative proximity to Copiapó made a trade-off study valuable.
Figure 1: Regional Map
An analysis of the difference in transport volumes was undertaken showing a minimal overall difference between the two scenarios. For Scenario 3 where impurity removal and carbonation stages are in Copiapó, there will be no transport of reagents or bulk chemicals to Laguna Verde which has a positive environmental and community impact.
A qualitative assessment was then undertaken by the Company across the range of metrics as shown in Figure 2. There are only two metrics in which Scenario 1 where the entire plant is located at site has a significantly positive comparison. The first one is storage during the construction phase, in that it will require a single storage facility rather than storage at both locations for tools, materials and spare parts. The second is disposal of solids, which is largely Sodium Chloride (NaCl or table salt) that is dissolved in the eluate and removed in the impurity removal stage before carbonation. In Scenario 1, these would be re-dissolved in the spent brine and re-injected. In Scenario 3, the report assumed NaCl would need to be disposed in Copiapó at a cost. However there should be a ready market for NaCl and further evaluation of this is required.
Figure 2: Qualitative Comparison- All on site (1) and split plants (3)
Across a range of other metrics the Scenario 3 of locating the downstream plant at Copiapó has major advantages. According to Lanshen, approximately 70% of the operational labour force will work at the downstream plant, which provides a far superior option for skilled workforce based in Copiapó. The footprint at the project site will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts. The Board has accepted the study and the decision to split the plant facilities between the project site and Copiapó will be the basis for the PFS.
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.
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
New Bridging Loan and Termination of Convertible Loan Notes
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing lithium projects in Chile, is pleased to announce it has secured commitments from a number of investors (including existing shareholders) to raise gross proceeds of approximately A$4 million (approximately £2.1 million) through the issue of loan notes (the "Loan Notes"). In addition, the Company announces that on 28 June 2024 it has terminated the £1 million convertible loan notes (the "CLNs"), details of which were announced on 22 April 2024.
The Loan Notes:
The Loan Notes subscribed for are for an aggregate amount of A$3,995,000, have been denominated in both Australian Dollars (the "AUD Loan Notes") and Pounds Sterling (the "GBP Loan Notes") and carry an entitlement to warrants ("Warrants"). Each A$ 0.9126 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes subscribed will carry an entitlement to one Warrant. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being a 71.4 per cent. premium to the Company's closing share price on 28 June 2024 of £0.14 and each has a term of 5 years.
The funds raised through the issue of the Loan Notes will provide CTL with immediate liquidity and will enable the Company to maintain its current activities and work programmes whilst it prepares for the planned dual-listing on the Australian Securities Exchange ("ASX").
CLNs Termination:
On 28 June 2024 the Company terminated the agreement relating to the £1 million CLNs, details of which were announced on 22 April 2024, due to the CLNs subscriber failing to pay the subscription monies for the CLNs to the Company, despite ongoing assurances to the Company that they would meet their obligations under the agreement.
Steve Kesler, Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"The Board considered it prudent to bring in the necessary funds now to provide for our working capital as we move forwards towards the intended ASX dual-listing. We are grateful to the Loan Note holders for responding to our request for a short-term facility which is undertaken on what the Board considers to be in line with reasonable terms for a loan facility of this type. This loan is intended to be a short-term bridging facility to be repaid from the proceeds of the next capital raise, which as previously announced, the Company intends to conduct in connection with its dual-listing on the ASX.
I was in Australia for meetings with various parties for 10 days recently, along with our advisors and fellow director Tommy McKeith, and we were very pleased at the reception to our Company's story.
We will update the market again soon on the next steps with the listing."
Further Information on the Loan Notes:
On 28 June 2024 CTL has entered into the Loan Notes with four lenders on the following terms:
- A$3,140,000 AUD Loan Notes and £450,000 GBP Loan Notes have been subscribed for, equivalent to total gross proceeds of A$3,995,000 or £2,102,632 at an FX rate of GBP1.00/A$1.90
- The Loan Notes attach a Warrant for every A$0.912 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes issued respectively
- The AUD Loan Notes are issued in integral multiples of A$10,000 and the GBP Loan Notes in multiples of £10,000
- The Loan Notes do not bear interest and have a maturity date of 12 months from issue date ("Maturity Date")
- A premium shall be payable on the principal amount of any outstanding Loan Notes, to be paid on the date of redemption, as follows:
- 15% premium if the Loan Notes are repaid within three (3) calendar months of their issue date; and
- Should the repayment not be made within the first three (3) months, then the premium incrementally increases to up to 50% should the Loan Notes be repaid between ten (10) and twelve (12) calendar months from the date of issue.
- All of the outstanding Loan Notes shall be redeemed on the earlier of:
- the Maturity Date, and
- 10 business days following the completion of a capital raise of at least A$5,000,000.
- Security:
- The Loan Notes are unsecured for the first three months. Should the repayment not be made during that period, security over assets will need to be procured. Until the Loan Notes have been redeemed, the Company will not take out any other loan facilities without the prior approval of at least 75% of the Loan Noteholders.
Related Party:
Regal Tactical Credit Fund, of which Regal Funds Management Pty Ltd is a trustee, has subscribed for A$3,000,000 of the AUD Loan Notes. Regal Funds1, as defined below, are currently interested in 15.35 per cent. of the Company's issued share capital and therefore are, as a substantial shareholder, a Related Party under the AIM Rules. As such, Regal Tactical Credit Fund's participation in the subscription under the AUD Loan Notes is a Related Party Transaction for the purposes of Rule 13 of the AIM Rules.
In assessing the reasonableness of the terms of the Loan Notes, the Directors considered several prevailing factors including the Company's cash position in general, the need to replace proceeds from the CLNs which had not been paid (as referred to above) the pressing need to manage Company's near-term working capital requirements with suitably priced alternative funding and also to find supportive Loan Note holders who are supportive of the Company's wider objectives. The only equity linkage is the Warrants with a fixed subscription price of either A$0.456 or £0.24 which compares to a closing price on AIM on 28 June 2025 of £0.14. As explained above, the Loan Notes are intended to be repaid from the proceeds of the next capital raise in conjunction with the planned ASX listing, were that listing not to occur then the Company would need to undertake an alternative raise at some point over the next twelve months to allow for the Loan Notes to be repaid in full.
Accordingly, the Directors of the Company, all independent, having consulted with Beaumont Cornish Limited, the Company's Nominated Adviser, have concluded that the terms of the Loan Notes are fair and reasonable insofar as the Company's shareholders are concerned.
1Regal Funds comprising Regal Funds Management Pty Limited and its associates (including Regal Partners Limited, of which Regal Funds Management Pty Limited is a wholly owned subsidiary) which act as trustee and investment advisor for certain funds
Warrant Instrument:
The Loan Notes carry an entitlement to Warrants. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being 71.4 per cent. above the Company's share price at close of trading on 28 June 2024 of £0.14 and has a term of 5 years. If exercised, the Warrants would generate approximately £1.1m in additional cash proceeds for the Company. All Warrants are transferrable.
In aggregate a total of 4,380,181 Warrants have been granted and any Warrants which are unexercised at the end of the relevant subscription period shall automatically expire. Upon exercise of the Warrants, it is anticipated the underlying Ordinary Shares will be issued within seven days.
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 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Fox-Davies Capital Limited (Joint Broker) | +44 (0) 20 3884 8450 |
Daniel Fox-Davies |
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.
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
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