TIDMCLON
RNS Number : 4719U
Clontarf Energy PLC
28 March 2023
28(th) March 2023
Clontarf Energy plc
("Clontarf" or "the Company")
Joint Venture Agreement on Direct Lithium Ion Extraction
Technology in Bolivia.
Clontarf Energy plc (AIM: CLON) is pleased to announce that it
has elected to proceed with the NEXT-ChemX Bolivian joint venture,
and therefore has executed the formal Contractual Partnership
Agreement with NEXT-ChemX Corporation ("NEXT-ChemX"), which
supersedes the 'Heads of Agreement' announced on 15 February
2023.
The purpose of this 50:50 joint venture (the "JV") is to
demonstrate the technical, commercial and environmental feasibility
of NEXT-ChemX's ion-Targeting Direct lithium Extraction ("iTDE")
technology in Bolivia. The JV will hold exclusive rights to deploy
and commercialise NEXT-ChemX's iTDE technology in Bolivia, and is
governed by the laws of the State of Texas.
Under applicable laws, the JV will, in coordination with the
Bolivian authorities, sample, test, and potentially produce lithium
salts.
The initial priority of the JV is to confirm the technical,
commercial and environmental feasibility of the technology in a
pilot plant to be constructed in Austin, Texas. Under contractual
arrangements to be agreed with the Bolivian authorities under
applicable law, and subject to securing the necessary further
funding, the JV plans to deploy a pilot plant in Bolivia in
partnership with the State Lithium Company, YLB.
Clontarf is separately in discussions with lithium brine
developers outside of Bolivia regarding potential partnering
arrangements.
Further details on the formation of the JV
NEXT-ChemX will provide US$500,000 proof of funds to Clontarf,
and Clontarf is to pay NEXT-ChemX US$500,000 towards testing and
the pilot plant construction, and as an exclusivity fee for the use
of the NEXT-ChemX's iTDE's technology in Bolivia.
Clontarf is also required to issue to NEXT-ChemX 385 million new
ordinary shares in the capital of Clontarf ("Ordinary Shares"), of
which half will be subject to a 12 month lock in requirement. At
yesterday's closing price, such issue of new Ordinary Shares is
worth approximately GBP580,000.
The above two paragraphs detail the "Conditions Precedent" to
the JV coming into force. A further announcement will be made as
and when the Conditions Precedent are satisfied.
As part of the transaction, NEXT-ChemX will issue to Clontarf
the number of fully paid restricted shares of common stock of
NEXT-ChemX representing a US$500,000 value, with the exact number
of shares being calculated using the issuance price fixed at the
next completed equity raising that is closed and reported to the
SEC by NEXT-ChemX. Such shares shall be issued at the closing of
the next equity raising carried out by NEXT-ChemX.
Clontarf will potentially issue the following further Ordinary
Shares to NEXT-ChemX (or its nominee):
-- 250 million new Ordinary Shares, after successful pilot
processing of Bolivian brines through the NEXT-ChemX pilot plant;
and
-- 250 million new Ordinary Shares after entry into a
construction and processing contract between the JV and the
Bolivian authorities on processing of Bolivian brines utilising
NEXT-ChemX's iTDE's technology.
Pilot Plant Update:
In respect of the pilot plant:
-- Final piping and instrumentation diagram (P&ID)
engineering for the Pilot Plant is complete, based on modular
40-foot containers specifically designed for the chemistry of the
ions to be extracted from a brine;
-- Custom designed Hollow Fiber Membranes have been produced and
a production system has been designed for immediate erection of the
pilot plant; and
-- Testing of various lithium brines is planned, subject to applicable laws, during Q2 2023.
The Process from Lab to Pilot, and then to Commercial
Operations
The extraction of ions has been proven in the lab for various
concentrations of different ions using the iTDE technology, which
is based upon the square metres of active surface area. Therefore,
in the Board's view, it should be easily scalable, since an
increase in the surface area results in a proportionate increase in
extraction yield. The same basic system works for different ions,
however the flow rates and chemistry differ for each brine
composition. Therefore, exact kinetics of each reaction must be
determined by running the brine liquids through the Pilot system.
This allows the calculation of OPEX and therefore CAPEX for a
specific brine project.
Chairman, David Horgan, commented:
"The world is steadily electrifying, even in hard-to-electrify
sectors like transport. Electricity is already about 21% of world
primary energy demand, and is projected to grow 2% yearly reaching
35% of total by 2050. According to BP calculations, electricity
generation would need to grow by 2.4% yearly to achieve 'net zero'
by 2050.
"Much of this supply growth is anticipated to come from
intermittent sources like wind and solar. Yet existing grids are
inadequate even for current needs. Green capital is flowing into
more exciting areas like offshore wind and hydrogen, while grids
are neglected. Electricity grid storage worldwide is minimal.
"The most cost-effective battery storage -- whether for vehicles
or grids -- is currently lithium-ion technology. Yet existing hard
rock and brine sources are inadequate. Official estimates of demand
by 2050 vary between 12 and 60 times current output from existing
sources.
"To even partly meet such demand, the world needs a dramatic
increase in battery grade lithium salts output. Projected global
demand cannot be delivered without major Bolivian output. The delay
has been the shortcomings of evaporative ponds at high altitude,
some rainfall and impurity levels. The only solution is Direct
Lithium Extraction technology.
"Any Bolivian operations will conform with applicable laws, in
partnership with the State Lithium Company, and respect high
international operating standards.
"The joint venture's ion-Targeting Direct lithium Extraction
("iTDE") technology may unlock some of Bolivia's brine potential,
by reducing water use by 95%, minimising plant footprint, and
increasing output to meet surging demand ."
ENDS
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
For further information please visit http://clontarfenergy.com
or contact:
Clontarf Energy
David Horgan, Chairman
Jim Finn, Director +353 (0) 1 833 2833
Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer +44 (0) 20 7409 3494
Broker
Novum Securities Limited
Colin Rowbury +44 (0) 207 399 9400
Public Relations
BlytheRay
Megan Ray +44 (0) 207 138 3206
Teneo
Luke Hogg
Alan Tyrrell +353 (0) 1 661 4055
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END
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