CleanTech Lithium,(CleanTech Lithium PLC (AIM:CTL) the AIM-listed lithium developer, saw its shares open at 6.25p on 20 August, up 8.7% from a previous close of 5.75p, after it settled a long-running dispute with the vendors of its Laguna Verde mining concessions.
Under the amended agreement, the Chile-focused lithium developer will pay $14 million for the licences, down from the $35 million agreed in 2024, with $2.5 million already paid.
Of the remaining $11.5 million, $9 million will become payable only when specified lithium sales-volume milestones at Laguna Verde are achieved, reducing the immediate cash requirement.
CleanTech will also issue 6.6 million new shares to the vendors in three equal tranches, with each tranche conditional on specified milestones and subject to a six-month lock-in.
The agreement, signed on 19 August, also resolves historic financial and legal disputes between CleanTech and the vendors, with the vendors required to withdraw all pending claims and criminal allegations against members of the group.
CleanTech is developing lithium projects in Chile and said it can now focus on selecting a strategic partner, pursuing a planned Australian Securities Exchange listing and progressing regulatory and environmental work at Laguna Verde.
The company is also awaiting ratification and formal issuance of the special lithium operating licence for Laguna Verde, known as a CEOL, while preparations for an Environmental Impact Assessment continue.