REG - Clontarf Energy PLC - Corporate Update

Clontarf EnergyAnnouncement

09/07/2024 09:45

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RNS Number : 6807V  Clontarf Energy PLC  09 July 2024

 

9 July 2024

 

Clontarf Energy plc

("Clontarf" or "the Company")

 

Corporate Update

 

The Directors of Clontarf Energy plc (AIM: CLON) are pleased to provide a
corporate update which will be presented to shareholders at todays AGM.

 

The main corporate activity has been driving ahead Clontarf Energy's proposals
under the Bolivian convocatoria, or 'call for expressions of interest' in
developing Bolivian Lithium brines.

 

Clontarf is now in Phase 4 of a 5 Phase process, which now focuses on maturity
of the offered technologies.  Stream 1 covers companies claiming to be
already operating Direct Lithium Extraction plants.  Stream 2 includes
operators with an existing technology and plants being commissioned.
Clontarf was initially placed in Stream 3, but now expects to be treated as
Stream 2, since the joint venture's plant now awaits bulk samples for
production testing.

 

Clontarf's joint venture partner, NEXT-ChemX, is assembling, and commissioning
a Direct Lithium Extraction pilot plant, which is preparing synthetic brines
for preliminary testing based on chemical compositions recorded from our
sampling of priority salares.

 

Clontarf has therefore applied for bulk samples to be collected on its behalf,
by the State Lithium Company under applicable rules, from at least two
salares. One of these is expected to be high-grade Lithium, and the other
including major Magnesium content, as well as attractive Lithium content.
This may confirm the output, purity and operating costs of the likely range of
brines to be processed.  On receipt, these samples will be sea-freighted to
our joint venture's pilot plant near Mumbai, India.

 

Actual production testing will start immediately after arrival at site, as a
priority.  Bolivian technical experts are invited to attend the production
testing, to confirm results.

 

Reflecting the current maturity of our joint venture's Direct Lithium
Extraction pilot plant, Clontarf expects sample delivery to be expedited and
Clontarf to be effectively promoted to Stream 2 of the technology confirmation
process.  This may immediately follow negotiations with the 3 Chinese and one
Italian company who state that they already have DLE operations.

 

Signing of convenios, and possibly contracts, may follow successful testing
and negotiations of terms and conditions.  We anticipate deploying plants to
one or more Bolivian salares thereafter.

 

●    David Horgan, Chairman, commented: "Europe needs offtake of pure
Bolivian Lithium, while Bolivia needs to export battery-grade Lithium."

 

"No one company or country can grapple with China and NAFTA. Accordingly,
Clontarf is part off Team Europe's programme to secure adequate supplies of
Lithium and other priority minerals.  This initiative is promoted by the EU
Commission, and supported by the Critical Resource Minerals Act, as well as
the wider 'Global Gateway' initiative".

 

"Demand for Lithium carbonate equivalent grew 30% to circa 930 thousand tonnes
in 2023.  New projects struggle to deliver the supply needed.  Dirty
sourcing, especially of hard rock ores, conflict with the clean, Green image
EV marketers depend on.  The answer is clean brines' processing, which may -
in time - earn a price premium."

 

"EU Commission leadership has been key in financing necessary infrastructure,
especially through the 'Global Gateway' initiative.  The EU was initially
slow to respond to the Chinese challenge, but now moves decisively - backed by
circa €400 billion of possible financing.  20-year money at a 3.3% coupon
convinces many counter-parties.  They are saying it with cash, as well as
markets and strategic partnerships.  The EU does not bring the historical
baggage handicapping other power-blocs."

 

"Bolivia is not for beginners.  Therefore, Clontarf has developed a strategy,
with off-taker support, to operate, if necessary, under existing laws and
Constitution.  But we expect progress to be helped by the local community
royalties and ESG expenditure proposed to Congress under the shortly-to-be
updated 2017 Lithium Law.  This may confirm the legality of joint ventures,
answer legitimate community queries, and best align the stakeholder
interests."

 

"Europe will thereby source secure, as well as clean raw materials.  Locals
will benefit from infrastructural investments, a share in re-invested profits,
shared services & technology transfer."

 

"We seek enduring partnerships, rather than employees".

 

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

 

 

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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