REG - Clontarf Energy PLC - Bolivia Update, Fundraising and TVR

Clontarf EnergyAnnouncement

18/03/2024 07:00

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RNS Number : 1526H  Clontarf Energy PLC  18 March 2024

 

18 March
2024

Clontarf Energy plc

("Clontarf" or the "Company")

Bolivia Update, Fundraising and TVR

Bolivian Brines Qualification and Negotiations Funded

Fundraising

Clontarf Energy plc (AIM: CLON), the energy company focused on lithium brines,
and petroleum projects, is pleased to announce that the Company has raised
£400,000 (before expenses) via a placing of 1,142,857,143 new ordinary shares
of 0.01p each in the Company ("Ordinary Shares") ("Placing Shares") at a price
of 0.035p per Placing Share (the "Placing").

CMC Markets UK Plc, trading as CMC CapX, acted as the Company's sole placing
agent in respect of the Placing.

The Placing Shares represent approximately 18% of the Company's issued share
capital as enlarged by the Placing.  The issue of the Placing Shares is being
satisfied from the Directors' existing authority to allot shares free of
pre-emption rights.

The net proceeds of the Placing will be used to advance Clontarf's lithium
projects in Bolivia, and neighbouring countries, as well as on petroleum
projects in Ghana, Australia, and elsewhere, and for general working capital
purposes.

Bolivia Update

Clontarf Energy plc is making rapid progress on its activities in Bolivia and
is pleased to report the following update:

Further to the Company's 6 March 2024 announcement, the Bolivian State Lithium
Company ("YLB") received Clontarf's qualification materials in relation to the
Call for Bids ("convocatoria") for the seven priority salares (salt pans) in
Southern Bolivia. Assessment by YLB is expected during March (of the reported
38 qualification submissions, including equipment suppliers and consultants as
well as Direct Lithium Extraction developers), with negotiations on licence
terms for those successful applicants anticipated during April.  Clontarf has
been approved to advance to the second phase of the assessment process.  The
above mentioned funding is likely to satisfy any initial requirement to show
financial capacity.

The Company further notes that the European Commission is vigorously pursuing
its priority Critical Resources Initiative, and committing substantial
financial and other resources to bring producers, suppliers, and users
together to secure adequate off-take for European markets. EU private sector
and financial institutions now focus on strengthening critical raw material
value chains between the EU and Latin America.

Further updates will be provided, as appropriate, in accordance with necessary
clearances from the authorities.

Admission and TVR

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 21 March 2024.

Following Admission, there will be a total of 6,336,183,260 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.

David Horgan, Chairman, commented: "There has been rapid progress on
developing high-purity, cleanly produced battery-grade Bolivian Lithium for
the European market:

European institutions understand that only brines can produce clean Lithium of
the requisite quality for demanding future applications.

Hard rock sources in Africa and Australia can supply technical grade material
for Chinese upgraders, but at an environmental cost.  Many rock miners are
currently high-grading, mining only the richest and best minerology sources.
This satisfied demand growth but is not sustainable at the expected demand
volumes, purity requirements, and especially cleanliness standards.  Burning
rocks in coal-fired furnaces at circa 800ºC for days is not environmentally
friendly.

Clontarf has worked on this opportunity since 2008.  Progress was slow until
establishment of the Bolivian National Lithium Company (YLB) under the 2017
Lithium Law.  Now, via the current convocatoria, there is a clear route to
negotiating contracts with robust legal title.

The appointment of dynamic experts at both National Lithium Company and
Ministry levels has simplified the approvals' process.  Bolivia now focuses
on boosting investment and exports, mainly targeting the premium markets in EV
and grid storage batteries, as well as emerging high-tech applications.

Meanwhile, the EU appreciates the threat posed by protectionism elsewhere,
especially in China and under the USA's Inflation Reduction Act 2022.  It is
no longer acceptable to take a hands-off approach to securing supplies of
critical raw materials.  The energy transition, and high-tech industries are
too critical to be left to chance.  Protectionism elsewhere forces the hands
of EU institutions and key users, including automotive manufacturers.

In this newly protectionist environment, Clontarf's experience and know-how
are valuable.  Few share our years of hands-on experience of Bolivian
operations and Lithium technologies.

Over recent weeks we have been approached by potential funders from London and
the USA.  Given the accelerating progress we consider it wise to accept
sufficient cash now to illustrate our financial capacity for the next phase.

Your directors are reluctant to dilute at a low share price in challenging
stock markets, but the potential prize is too rich to put in jeopardy."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014.

ENDS

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

 Fia Long

 Alan Reynolds

 

 

 

 

 

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