CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF) said it has submitted its main application for a Special Lithium Operation Contract (CEOL) for its flagship asset, the Laguna Verde project in Chile.
Laguna Verde is one of six saline systems that the Government of Chile has prioritised for development by the private sector.
A CEOL gives the applicant the right to commercially produce lithium from the specified project.
Cleantech Lithium (CTL) added that though normally a process that involves a public tender, a CEOL can be awarded through direct negotiation if it meets certain criteria.
The company believes that its application Laguna Verde demonstrates these criteria and so CTL expects to proceed with direct negotiation with the Government on the terms.
CTL added that its application contains 1200 pages of supporting documentation and details the basis under which it intends to advance the project
It is aiming to have its application for direct negotiation accepted by April 2025 and to have the CEOL awarded around mid-year 2025.
Steve Kesler, CTL’s executive chairman, said: "We believe that our CEOL application fully complies with the criteria established by the Mining Ministry to enter the simplified procedure and direct negotiation.
"We think this marks a major step towards advancing sustainable lithium supply from Chile to the global battery and EV market. CleanTech Lithium has undertaken extensive work on the project over the past 4 years.
“With the recent announcement of high-grade lithium carbonate production from Laguna Verde brine and with the pre-feasibility study expected to complete end of March, we believe we are extremely well-placed to engage with strategic partners and move the Project forward.
"Finally, I would like to thank the local community leaders who have supported our CEOL application.”