LONDON, UK: CleanTech Lithium PLC, a prominent exploration and development company, has announced the completion of its acquisition of 23 Laguna Verde licences, solidifying its full ownership and control over the entire 108 mining licences of the Laguna Verde project in Chile.

This strategic acquisition, initially detailed in the company’s AIM Admission Document on March 11, 2022, is expected to substantially enhance shareholder value and reduce investment risk, considering the project’s advanced stage.

The full ownership of the licences also paves the way for a planned dual-listing on the Australian Securities Exchange (ASX), marking a milestone in the company’s growth trajectory.

To support this venture, CleanTech Lithium PLC has successfully issued convertible loan notes to raise £1 million. The directors have expressed confidence in the terms of this financial instrument, which they believe to be favorable for the company’s future.

The sale and purchase agreement (SPA) for the licences introduces a cap on payments to the vendors, thereby limiting potential shareholder dilution and improving future returns. The SPA also facilitates the ASX listing process, with staged payments to the vendors scheduled over the next decade. The initial payment has been covered by a £1 million unsecured, three-year convertible loan note.

Subsequent payments are planned to be a minor portion of the construction finance for the Laguna Verde project or from sales revenues once production milestones of 10,000 and 35,000 tonnes of lithium carbonate equivalent (LCE) are reached. These arrangements offer a clear financial structure for the licence payments, eliminating any subjective valuation mechanisms and the need for payments in CTL ordinary shares.

With 100% ownership of the licences, CleanTech Lithium PLC is now well-positioned to support its CEOL applications and advance towards production, signaling a robust future for the company and its stakeholders in the burgeoning lithium market.

Steve Kesler, Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said: “Acquiring the 23 Laguna Verde licences under new commercial arrangements, so the Company has full ownership as well as control, is a prudent decision, which will support potential long-term returns to investors. The Company has also been advised that gaining full ownership of the licences will clear the path for the dual-listing on the ASX. While the timing of this decision has been driven by the ASX listing requirements, it was always planned to make these changes for commercial reasons and to provide our shareholders and potential strategic parties with clarity on the ownership position and amounts payable over time. The Board is pleased to have reached agreement with the Vendors on this matter and thanks them for their flexibility over the course of the past few months. 

“Having been offered attractive terms by a third party to fund the first staged payment through a convertible loan facility, the Board felt it was prudent to take up this offer, allowing us to continue to focus our existing resources on our ongoing and planned work programmes. We are grateful to the new convertible loan note holder who has demonstrated real confidence in our plans.

“I would also like to recognise and thank our previous CEO, Aldo Boitano, for his crucial role in bringing both these agreements to a successful conclusion.

“Now that these changes have been made, we will look to dual-list on the ASX, with the relevant documentation on this now being under way. We will update our shareholders on this in due course when the application has been made.”

CleanTech Lithium produces lithium chloride eluate from its pilot plant