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
or
contact:
Clontarf Energy
David Horgan, Chairman
Jim Finn, Director
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+353 (0) 1 833 2833
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Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer
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+44 (0) 20 7409 3494
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Broker
Novum Securities Limited
Colin Rowbury
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+44 (0) 207 399 9400
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Public Relations
BlytheRay
Megan Ray
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+44 (0) 207 138 3206
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Teneo
Luke Hogg
Alan Tyrrell
Fia Long
Alan Reynolds
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+353 (0) 1 661 4055
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