Plans are currently being delayed by ‘procedural matters’ in this group’s application for a listing on the Australian Securities Exchange.
On Tuesday 13th August the hopes were that CleanTech Lithium (LON:CTL) had submitted its Prospectus for a dual-listing on the ASX.
It also inferred that it was hoping to raise up to A$20m in the process.
Management Comment
At that time Chairman and Interim CEO Steve Kesler stated that:
“CleanTech Lithium is positioning itself to become a leading supplier of battery-grade lithium to the growing EV and energy storage market to support the global energy transition.
We’re excited of the prospect to join the ASX which is home to many of the world’s leading lithium companies.
In addition to our existing AIM listing, the dual-listing in Australia will provide us with access to a broader collection of security holders and stakeholders who have a deep understanding of the lithium industry and its importance in supporting the world’s ambitions for net-zero.
We are looking forward to introducing CTL to the Australian market, providing Australian investors the opportunity to invest in an emerging producer of battery grade lithium from a country with an established lithium industry, an FTA with the USA and a preferential trade agreement with the EU.
Our two core projects host, in aggregate, total resources of more than 2.7 million tonnes of LCE and we are advancing the use of DLE technology, which features much higher recovery rates and less environmental impact compared to conventional forms of lithium extraction.
We are also aiming to be powered by renewable energy once in production, utilising Chile’s excellent renewable energy resources including in the region of our projects.
Harnessing DLE and renewable energy positions CTL to be a leader in a more efficient method of producing lithium in Chile, and we believe this will give us an advantage in supplying a premium lithium product to the market.”
The company declared that the proceeds of the proposed Fundraising could be applied towards the development of the company’s suite of projects in Chile, primarily the completion of the Pre-Feasibility Study at the Laguna Verde Project and ongoing operations at the DLE pilot plant, which is producing battery-grade lithium carbonate.
CTL’s projects are centred in an area of northern Chile dubbed the ‘lithium triangle’ which is shared with Argentina and Bolivia.
CTL aims to become a leading producer and supplier of ‘green’ battery-grade lithium to the Electric Vehicle and Energy Storage market by utilising advanced environmentally-sensitive processing technology powered by renewable energy.
Submission Of Replacement Prospectus
On Tuesday 27th August the group announced that it had needed to issue a Replacement Prospectus to the ASX clarifying the scalability and global usage of Direct Lithium Extraction and the company’s reliance on renewable energy and potential exposure to fossil fuels.
The amended copy now also contains additional information on the Chilean national electricity grid’s existing high renewable energy mix.
It noted that it plans, where possible, to include renewable energy sources to power operations in line with its objective of promoting sustainable lithium production.
At that time the company stated that it did not anticipate that the lodgement of the Replacement Prospectus would impact the timing of its admission to ASX and declared that admission is expected to occur on or around 24th September.
Offer Period Extended
On Monday 9th September the company noted the delay and reactively decided to extend the Offer Period for its fundraising from 9th September to 23rd September.
It stated that it will provide a further update once it has received confirmation of the proposed ASX Admission and commencement of trading dates.
Update On Its ASX Listing
Last Friday 20th September the company announced that it had been informed by representatives of the Australian Securities Exchange that due to procedural matters the approval process of the company’s listing on ASX will be extended.
CleanTech Lithium informed investors that it is working with its lawyers in Australia, its other advisers and ASX to address the matters expeditiously and will provide the market with a further update when greater clarity has been obtained on the revised expected timetable.
In My View
This £23m capitalised group’s shares, which hit 94p in February last year and were down to just 10.50p in April this year, before rapidly picking up to 25.30p in late July, then drifted back to 14p just over a month ago.
Despite the ‘procedural delays’ they are now trading at around the 15p level.
I hope that the company can get its ASX listing speeded up, thereby enabling the required funding to complete.
Getting that out of the way will allow mining sector punters to react rapidly to any items of good corporate news that are sure to follow.