CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF) has announced a series of significant developments, including the acquisition of additional licences, a fundraising plan, a loan note restructuring, and changes to its board.
It has signed an agreement to acquire 30 more licences at its Laguna Verde project in Chile from Minergy Chile, a local family office.
This deal increases CleanTech’s control of licences within the government-defined Special Lithium Operating Contract (CEOL) area to 97.63%, well above the 80% minimum needed to pursue a streamlined CEOL process.
To fund this expansion, CleanTech plans to raise approximately £4.25 million through the issue of new shares at 5p each via an accelerated bookbuild.
The fundraising will be conducted in two tranches: about £1.12 million in the first and approximately £3.13 million in the second.
Additionally, the company has granted a broker option that could raise up to £0.25 million more and intends to offer a retail placing of up to £0.25 million for existing shareholders.
Each new share from the fundraising will carry a warrant allowing investors to buy additional shares at 6p each between one and three years after the fundraising’s completion.
Net proceeds will cover acquisition payments, feasibility study costs for Laguna Verde, direct lithium extraction technical work, and general working capital.
CleanTech is also proposing to extend the maturity of its loan notes to 30 June 2026 and capitalise related fees and premiums.
They will be convertible into shares at 5p each before maturity. Note holders will gain the right to appoint a non-voting board observer until full repayment.
Investors were also told the board will temporarily reduce to two directors to cut costs.
Steve Kesler will step back to become non-executive chairman, while several directors, including the CFO Gordon Stein, who will remain until February 2026, will step down.
The company intends to appoint a new Jersey-based non-executive director.