REG - Clontarf Energy PLC - JV Agreement on Direct Lithium Extraction Bolivia

Clontarf EnergyAnnouncement

28/03/2023 10:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230328:nRSb4719Ua&default-theme=true

RNS Number : 4719U  Clontarf Energy PLC  28 March 2023

 

 

28(th) March 2023

 

Clontarf Energy plc

("Clontarf" or "the Company")

 

Joint Venture Agreement on Direct Lithium Ion Extraction Technology in
Bolivia.

 

Clontarf Energy plc (AIM: CLON) is pleased to announce that it has elected to
proceed with the NEXT-ChemX Bolivian joint venture, and therefore has executed
the formal Contractual Partnership Agreement with NEXT-ChemX Corporation
("NEXT-ChemX"), which supersedes the 'Heads of Agreement' announced on 15
February 2023.

 

The purpose of this 50:50 joint venture (the "JV") is to demonstrate the
technical, commercial and environmental feasibility of NEXT-ChemX's
ion-Targeting Direct lithium Extraction ("iTDE") technology in Bolivia.  The
JV will hold exclusive rights to deploy and commercialise NEXT-ChemX's iTDE
technology in Bolivia, and is governed by the laws of the State of Texas.

 

Under applicable laws, the JV will, in coordination with the Bolivian
authorities, sample, test, and potentially produce lithium salts.

 

The initial priority of the JV is to confirm the technical, commercial and
environmental feasibility of the technology in a pilot plant to be constructed
in Austin, Texas.  Under contractual arrangements to be agreed with the
Bolivian authorities under applicable law, and subject to securing the
necessary further funding, the JV plans to deploy a pilot plant in Bolivia in
partnership with the State Lithium Company, YLB.

 

Clontarf is separately in discussions with lithium brine developers outside of
Bolivia regarding potential partnering arrangements.

 

Further details on the formation of the JV

 

NEXT-ChemX will provide US$500,000 proof of funds to Clontarf, and Clontarf is
to pay NEXT-ChemX US$500,000 towards testing and the pilot plant construction,
and as an exclusivity fee for the use of the NEXT-ChemX's iTDE's technology in
Bolivia.

 

Clontarf is also required to issue to NEXT-ChemX 385 million new ordinary
shares in the capital of Clontarf ("Ordinary Shares"), of which half will be
subject to a 12 month lock in requirement. At yesterday's closing price, such
issue of new Ordinary Shares is worth approximately £580,000.

 

The above two paragraphs detail the "Conditions Precedent" to the JV coming
into force. A further announcement will be made as and when the Conditions
Precedent are satisfied.

 

As part of the transaction, NEXT-ChemX will issue to Clontarf the number of
fully paid restricted shares of common stock of NEXT-ChemX representing a
US$500,000 value, with the exact number of shares being calculated using the
issuance price fixed at the next completed equity raising that is closed and
reported to the SEC by NEXT-ChemX.  Such shares shall be issued at the
closing of the next equity raising carried out by NEXT-ChemX.

 

Clontarf will potentially issue the following further Ordinary Shares to
NEXT-ChemX (or its nominee):

 

·   250 million new Ordinary Shares, after successful pilot processing of
Bolivian brines through the NEXT-ChemX pilot plant; and

 

·    250 million new Ordinary Shares after entry into a construction and
processing contract between the JV and the Bolivian authorities on processing
of Bolivian brines utilising NEXT-ChemX's iTDE's technology.

 

Pilot Plant Update:

 

In respect of the pilot plant:

 

·   Final piping and instrumentation diagram (P&ID) engineering for
the Pilot Plant is complete, based on modular 40-foot containers specifically
designed for the chemistry of the ions to be extracted from a brine;

·   Custom designed Hollow Fiber Membranes have been produced and a
production system has been designed for immediate erection of the pilot plant;
and

·    Testing of various lithium brines is planned, subject to applicable
laws, during Q2 2023.

 

The Process from Lab to Pilot, and then to Commercial Operations

 

The extraction of ions has been proven in the lab for various concentrations
of different ions using the iTDE technology, which is based upon the square
metres of active surface area.  Therefore, in the Board's view, it should be
easily scalable, since an increase in the surface area results in a
proportionate increase in extraction yield.  The same basic system works for
different ions, however the flow rates and chemistry differ for each brine
composition.  Therefore, exact kinetics of each reaction must be determined
by running the brine liquids through the Pilot system. This allows the
calculation of OPEX and therefore CAPEX for a specific brine project.

 

 

 

Chairman, David Horgan, commented:

“The world is steadily electrifying, even in hard-to-electrify sectors like
transport.  Electricity is already about 21% of world primary energy demand,
and is projected to grow 2% yearly reaching 35% of total by 2050.  According
to BP calculations, electricity generation would need to grow by 2.4% yearly
to achieve ‘net zero’ by 2050.

 

“Much of this supply growth is anticipated to come from intermittent sources
like wind and solar. Yet existing grids are inadequate even for current needs.
 Green capital is flowing into more exciting areas like offshore wind and
hydrogen, while grids are neglected.  Electricity grid storage worldwide is
minimal.

 

“The most cost-effective battery storage – whether for vehicles or grids
– is currently lithium-ion technology.  Yet existing hard rock and brine
sources are inadequate.   Official estimates of demand by 2050 vary between
12 and 60 times current output from existing sources.

 

“To even partly meet such demand, the world needs a dramatic increase in
battery grade lithium salts output.  Projected global demand cannot be
delivered without major Bolivian output.  The delay has been the shortcomings
of evaporative ponds at high altitude, some rainfall and impurity levels.
 The only solution is Direct Lithium Extraction technology.

 

“Any Bolivian operations will conform with applicable laws, in partnership
with the State Lithium Company, and respect high international operating
standards.

 

“The joint venture’s ion-Targeting Direct lithium Extraction (“iTDE”)
technology may unlock some of Bolivia’s brine potential, by reducing water
use by 95%, minimising plant footprint, and increasing output to meet surging
demand.”

 

 

ENDS

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

 

 

 

 

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

 

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  JVEEANDPAAFDEEA