Aim-listed lithium exploration and development company CleanTech Lithium (CTL), led by mining veteran Steve Kesler, has announced plans to dual-list on the Australian Securities Exchange (ASX) next month, along with a proposed capital raise of A$20 million.
The company views the ASX as a “natural fit,” particularly given that a significant portion of its shareholder base, including Regal Funds Management with approximately 15%, is Australian.
“We’re excited about the prospect of joining the ASX, which hosts many of the world’s leading lithium companies. In addition to our existing Aim listing, the dual-listing in Australia will give us access to a broader range of security holders and stakeholders who possess a deep understanding of the lithium industry and its critical role in achieving global net-zero ambitions,” said Kesler.
CTL is advancing direct lithium extraction (DLE) projects in Chile, where the government strongly encourages the use of DLE to boost lithium production.
Kesler expressed enthusiasm about introducing CTL to the Australian market, offering Australian investors the opportunity to invest in an emerging producer of battery-grade lithium from a country with an established lithium industry, a free-trade agreement with the U.S., and a preferential trade agreement with the EU.
CTL’s two core projects have a combined resource of over 2.7 million tonnes of lithium carbonate equivalent (LCE).
The company is progressing with DLE technology, which is reported to have higher recovery rates and a lower environmental impact than conventional lithium extraction methods.
Scoping studies completed in 2023 for the flagship Laguna Verde project and the Viento Andino project demonstrated low operating costs and strong economic potential for a 20,000-tonne-per-year lithium carbonate operation at each site.
A prefeasibility study for Laguna Verde is expected to be completed by the end of 2024.
CTL operates a sector-leading DLE pilot plant in Chile with a capacity of one tonne per month of lithium carbonate equivalent.
The company anticipates producing significant quantities of battery-grade lithium carbonate in the second half of 2024 for product qualification testing by potential customers.
“Harnessing DLE and renewable energy positions CTL to lead in a more efficient method of lithium production in Chile.
We believe this will provide us with a competitive edge in supplying premium lithium products to the market,” Kesler added.
As part of the dual-listing on the ASX, the company aims to raise between A$10 million and A$20 million through the issuance of chess depositary interests (CDIs) at A$0.30 per CDI, with one free-attaching option exercisable at A$0.375.
The fundraising price of A$0.30 per CDI, equivalent to £0.1579, represents a 7.1% discount to the closing price per ordinary share on August 12. The attaching option at A$0.375 represents a 25% premium to the issue price of A$0.30.
