Clontarf Energy PLC Corporate Update

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 or contact:

 

Clontarf Energy David Horgan, Chairman Jim Finn, Director	[phone]
Nominated & Financial Adviser Strand Hanson Limited Rory Murphy Ritchie Balmer	[phone]
Broker Novum Securities Limited Colin Rowbury	[phone]
Public Relations BlytheRay Megan Ray	[phone]
Teneo Luke Hogg Alan Tyrrell Fia Long Alan Reynolds	[phone]

 

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END

 

 

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