CleanTech Lithium PLC (AIM:CTL) shares received a warm welcome as they started trading on AIM after a £5.6mln fundraising to enable the development of two battery-grade lithium projects in Chile.
The company received a net £4.8mln from the initial public offer and had an initial market capitalisation of £23.7mln at the 30p placing price.
By midday on the first day's dealings, the shares had risen 20% to 36p.
Its two projects, including the 1.2mln-tons Laguna Verde project, are being developed to produce lithium at low or zero emissions, with the environmental impact reduced by using direct lithium extraction technology.
Management is targeting first production in the second half of 2024.
Chief executive Aldo Boitano said: “The placing and admission to AIM will greatly support our ability to deliver value for all stakeholders from the company's two significant lithium projects in Chile.
“These assets offer a rare opportunity for investors to gain exposure to lithium projects, located within the heart of the lithium triangle, in South America.”
Battery-grade lithium is a core component of batteries for the rapidly growing electric vehicle (EV) market.
** Update: Adds share price **