REG - Clontarf Energy PLC - £1.3 million Fundraising and Corporate Update

Clontarf EnergyAnnouncement

16/01/2023 07:00

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RNS Number : 7327M  Clontarf Energy PLC  16 January 2023

 

16th January 2023

 

Clontarf Energy plc

("Clontarf" or "the Company")

 

£1.3 million Fundraising and Corporate Update

 

The Directors of Clontarf Energy plc (AIM: CLON) are pleased to announce that
the Company has raised £1,300,000 (before expenses) via the placing of, and
subscription for, 2 billion new ordinary shares 0.01p each in the Company
("Ordinary Shares") (the "Placing Shares"), via several Australian based
brokers, at a price of 0.065p per Placing Share (the "Placing"). The Placing
Shares represent approximately 45.76% of the Company's issued share capital as
enlarged by the Placing.

 

The Placing shares will rank pari passu with the Company's existing Ordinary
Shares. Application will be made for the Placing Shares to be admitted to
trading on AIM ("Admission") and it is expected that such Admission will
become effective on or around 19 January 2023. The issue of the Placing Shares
is being satisfied from the Directors' existing authority to allot shares free
of pre-emption rights.

 

The net proceeds of the Placing will be used to advance Clontarf's lithium
projects in Bolivia, and petroleum projects in Ghana, Australia, and
elsewhere.

 

Clontarf Energy plc has advanced its discussions with the Bolivian and
Ghanaian authorities in recent weeks, per the below update:

 

·    The Company's September 2022 auger campaign on six priority
medium-sized salt-lakes in Bolivia yielded lithium grades in all samples
taken. Its recent near-surface sampling from auger samples included results of
1,420 mg/l at one target salt-lake, and 1,010 mg/l at another. The overall
grade averaged 211 mg/l. Future drilling will identify the priority brine
zones to be tapped, subject to all necessary permitting and applicable laws,
and funding.

 

·    Anticipated global market demand will be at least twice current
global supplies, with tighter purity targets for the lithium-ion battery
industries. The best way to deliver these volumes and qualities are via direct
lithium extraction ("DLE") technologies, now under development by various
companies.

 

·    At the request of the Bolivian authorities in 2021, Clontarf Energy
plc has sought out market leading technologies capable of delivering high
purity lithium salts, with minimum deleterious impurities. After an exhaustive
search, we are optimistic that one such ionic separation technology may
provide a breakthrough in volume processing of the large-scale brines
available in Bolivian salt-lakes. Accordingly, Clontarf Energy plc is
finalising a Heads of Agreement with a potential DLE processing partner on
establishing a Joint Venture to exploit all available brines in Bolivia,
subject to, inter alia, necessary government approvals.

 

·    If laboratory test-work and DLE processing succeeds, the Company
plans, in partnership with its potential the DLE processing partner, for
production of lithium from brines using one or more sources.

 

·    This work followed an augering campaign, and encouraging chemical
analysis on the areas of the targeted salt-lakes of highest priority.

 

·    Further updates on Bolivian lithium, as well as Ghanaian and
Australian projects will be issued, when appropriate.

 

Issue of Broker Warrants

 

In connection with the Placing, 97,500,000 warrants over 97,500,000 Ordinary
Shares were issued to the brokers involved in the Placing. The warrants have a
term of one year, and an exercise price of 0.065p.

 

Admission and TVR

 

Following the Admission of the Placing Shares, there will be a total of
4,370,826,117 Ordinary Shares in issue with each share carrying the right of
one vote. The above figure may be used by shareholders as the denominator for
the calculations by which they will determine if they are required to notify
their interest in, or change to their interest in, the Company under the FCA's
Disclosure Guidance and Transparency Rules.

 

Chairman, David Horgan, commented:

 

"There are few commercial alternatives to serve anticipated lithium demand
without direct lithium extraction processing on Bolivian salt-lakes. Hard
rock lithium sources dominate current global supply, but 90% of upgrading
occurs in China, including in coal-fired furnaces at circa 800°C. This makes
a mockery of claims that current lithium sources are 'Green'.

 

"By contrast, extraction of circa 5% of brines volume through fluid extraction
has a modest environmental footprint, and potentially much lower costs.

 

"Clontarf Energy's team has 34 years Bolivian operating experience. Local
sensitivities must be respected, and large-scale developments requires
clarifying the Bolivian Lithium Law to confirm the legal basis for Joint
Ventures with the authorities.

 

"The commodity industry is emerging from a period of restructuring. But the
same environmentalism depressing investment in fossil fuels for a decade now
drives demand for 'Green minerals', including lithium. Only explorers,
developers and processing experts have the skills to develop the world's
largest, lowest cost, and most environmentally-friendly deposits."

 

 

 

For further information please visit http://clontarfenergy.com
(http://clontarfenergy.com) or contact:

 

 Clontarf Energy                    +353 (0) 1 833 2833

 David Horgan, Chairman

 Jim Finn, Director

 Nominated & Financial Adviser      +44 (0) 20 7409 3494

 Strand Hanson Limited

 Rory Murphy

 Ritchie Balmer
 Broker                                     +44 (0) 207 399 9400

 Novum Securities Limited

 Colin Rowbury

 Public Relations                   +44 (0) 207 138 3206

 BlytheRay

 Megan Ray
 Teneo                              +353 (0) 1 661 4055

 Luke Hogg

 Alan Tyrrell

 

 

 

 

 

 

 

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