CleanTech Lithium raises £2.4 million to take Laguna Verde through to next step
CleanTech Lithium PLC () has conditionally raised gross proceeds of £2.4 million through the issue of 15 million shares at 16p.
The placing shares represent approximately 15.2% of the company's enlarged ordinary share capital. Each share will carry a warrant entitlement to subscribe for one share at a price of 11p.
The majority of the placing shares were placed with current institutional shareholders, showing strong support from existing shareholders from Asia, Australia, Europe and the UK.
Net proceeds will go towards progressing the capital programmes which are critical for the award of the CEOL at Laguna Verde, to complete the Laguna Verde pre-feasibility study, to fund the listing on the ASX through to completion.
The money will also be used to enhance market visibility and access a broader investor base, to complete the first stage direct lithium extraction pilot plant conversion process and produce substantial quantities of battery grade lithium carbonate to introduce to potential off-takers and strategic partners, and for general working capital requirements.
In addition to the placing, the company has granted a broker option to Fox-Davies, in order to enable Fox-Davies to deal with any additional demand in the event that requests to participate in the placing are received before 5.00pm on 25 February 2025.
"We are delighted to see the return of existing shareholders and welcome new shareholders who have shown, despite difficult market conditions, their confidence in the company as we develop responsibly sourced lithium in Chile via direct lithium extraction,” said Steve Kesler, CleanTech’s executive chairman.
“The new funds will be focused on progressing toward the award of a CEOL at the Laguna Verde project, complete the Laguna Verde PFS, and on producing battery-grade lithium carbonate for potential strategic partners as well as maintaining our active engagement with indigenous communities whilst we pursue the dual listing in Australia in the coming weeks."
View from Vox
The new money ought to set CleanTech up nicely for a final run at its operating licence, its ASX listing, and its pre-feasibility study. The project has much in its favour, including its green credentials, and it will be interesting to see what the PFS shows in terms of economics.
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