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Funds raised from the placing will be used to progress development of the company's Chilean lithium projects and finance the commissioning of its Direct Lithium Extraction pilot plant.
European law firm Fieldfisher has advised AIM-listed CleanTech Lithium PLC on a placing to raise £8 million to help fund the development of its Laguna Verde and Francisco Basin lithium projects in Chile.
The company intends to commence a drilling campaign imminently to upgrade the lithium resource estimate at Francisco Basin, and complete its Pre-Feasibility Study for Laguna Verde.
The funds will also be used to help finance the commissioning and running of CleanTech's Direct Lithium Extraction (DLE) Pilot Plant in Copiapó in northern Chile, and the production of battery grade lithium carbonate.
Based in Chile, CleanTech Lithium holds licences rights over four projects, located in the lithium triangle, the world’s centre for battery grade lithium production.
It aims to use DLE, a proven technology that extracts lithium from the brine, without the need for evaporation, resulting in no depletion from the aquifer or harm to the local environment.
CleanTech Lithium was advised by Fieldfisher's leading Equity Capital Markets team, led by Co-Head of Energy and Natural Resources Dominic Gurney-Champion, supported by Co-Head of Mining Melanie Talbot and Solicitor Jamal Moursy.
Commenting on the deal, Dominic Gurney-Champion said:
"This was an important fundraising for CleanTech Lithium to enable it to continue moving its projects forward towards commercial production.
"It is no secret that the capital markets and the mining finance market have been challenging this year, but this deal signifies robust underlying investor interest in cleantech minerals needed for energy transition, and is hopefully an early sign of more confidence in the markets more generally."