REG - Clontarf Energy PLC - JV HoA on Direct Lithium Ion Extraction in Bolivia

Clontarf EnergyAnnouncement

15/02/2023 07:16

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RNS Number : 9364P  Clontarf Energy PLC  15 February 2023

15th February 2023

 

Clontarf Energy plc

("Clontarf" or "the Company")

 

JV HoA on Direct Lithium Ion Extraction Technology in Bolivia.

 

 

Clontarf Energy plc (AIM: CLON) is pleased to announce a heads of agreement
around the potential formation of a 50:50 Joint Venture with US based, OTC
Markets traded, technology company, NEXT-ChemX Corporation ("NCX") covering
testing, marketing, and deploying of NCX's proprietary (patent pending) direct
lithium ion extraction ("DLE") technology in Bolivia. Formation of the JV is
subject to final due diligence and the parties entering into formal
documentation, which is intended to occur within the next 30 days.

 

NCX's ion extraction technology uses the surface area of hollow fibre
membranes to extract lithium ions from brines. The technology is a continuous
process, and does not require high pressure, temperature or electrolysis. It
does not rely on osmotic processes, or costly filtration techniques
electrolysis, but instead mimics biophysical processes of natural principals
to induce ions in solution to cross the membrane barrier. This mimics how
mammal organisms remove wastes from a donor liquid without physically mixing
with an acceptor liquid.

 

The technology has been proven to be effective and efficient during laboratory
testing, and in the Board's view, NCX's technology is an innovative approach
to direct lithium extraction.

 

Environmental attractions include limited energy and water consumption,
extracting the targeted ions and generating minimal waste. It is suited for
lithium extraction from Bolivian brines, where evaporative ponds are not
optimal due to rainfall conditions, altitude and magnesium content.

 

Laboratory / bench test analyses extracted ions from solutions at ambient
temperatures and pressures - even in very low concentrations.

 

The next step is to test selected brines from potential sources. NCX is
assembling, subject to funding being delivered from Clontarf (per the below),
a pilot plant in Texas to test large volumes of brines, moving towards
feasibility and commercialisation. The plant will test circa 1,000 litres of
each specific brine, with an overall 20,000 litre trial run size, allowing a
customised NCX DLE commercial system to be assembled (in modular form) and
placed on site for field testing.

 

 

The NCX DLE Technology is patent pending, with intellectual property
protection managed by Patent Attorneys specialised in chemical processing and
materials science.

 

Clontarf is in discussions with Bolivia's state owned lithium company ("YLB")
to test NCX's proprietary DLE membrane technology on priority brines, which
may include identified salares on which preliminary samples have been taken.

 

Negotiations with the proper authorities covering the source and volumes of
brines to be processed, and on which commercial terms, are expected to follow
successful pilot plant operation - subject to applicable laws.

The pilot plant testing and extraction will begin during March 2023, including
both preliminary testing, as well as pilot plant operations, with results
expected by May 2023.

 

 

Heads of Agreement Terms:

 

A 50:50 joint venture company to be formed on completion of due diligence
covering the exclusive rights to the marketing, testing and deployment of the
NCX DLE technology in Bolivia.

 

Clontarf Energy plc to contribute $500,000 towards the pilot plant
construction and testing as an exclusivity fee for the use of the NCX
technology.

 

NCX will then issue shares equal to $500,000 at its next financing (CHMX:OTC)
to Clontarf Energy plc.

 

Clontarf Energy plc will issue shares as follows to NCX:

i.     385 million new Ordinary Shares on proceeding with the Pilot Plant
$500,000 contribution from Clontarf;

 

ii.    250 million new Ordinary Shares after successful pilot processing of
Bolivian brines through the NCX pilot plant; and

 

iii.   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 NCX processing technology.

 

 

NCX, or its nominee, will have the right, but not the obligation, to invest
£250,000 into the Company at a price of £0.00065, for 30 days from the
signature of this HoA.

 

As noted above, formation of the JV is subject to final due diligence and the
parties entering into formal documentation (based on the terms of the Heads of
Agreement), which is intended to occur within the next 30 days.

 

Chairman, David Horgan, commented:

 

"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.

 

"We believe that these constraints may be bypassed through innovative
technology.

 

"In minimising environmental impact, we have worked to reduce water use by
95%, and minimise the footprint of on-site operations.

 

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

 

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

 

 

 

 

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