TIDMCLON

RNS Number : 4292N

Clontarf Energy PLC

25 September 2023

25 September 2023

Clontarf Energy plc

("Clontarf" or the "Company")

Interim Statement for the period ended 30 June 2023

Clontarf Energy plc (AIM: CLON), the energy company focused on Australia, Africa and Bolivia, announces its unaudited financial results for the six months ended 30 June 2023:

Highlights

-- Formation of a comprehensive joint venture with breakthrough Direct Lithium Extraction ("DLE") technology developers NEXT-ChemX (the "JV").

-- Brine samples from five priority salares provided by the Bolivian State Lithium Company for testing.

-- All samples successfully navigated the US Customs checks without setbacks.

-- The JV's pilot plant components have now largely been assembled at sub-contractor facilities.

-- Technical improvements including development and perfection of state-of-the-art German-engineered sensors, to improve performance.

-- Pilot plant construction, including assembly of innovative components, will shortly be underway in Texas, after which testing will begin.

-- Subject to test results and Bolivian laws, Clontarf plans to run large-scale production testing to fine-tune the process.

-- Under applicable laws, the JV is ready to construct mobile pilot plants to process brines at different salares in Bolivia and neighbouring countries.

-- Clontarf has been invited to participate in European Union initiatives to deliver battery-grade lithium salts to European automotive, grid storage and mobile electronics industries.

-- The Bolivian authorities have adopted the suggestion to conduct a bid-round on medium-sized salares, certain of which Clontarf has reviewed and sampled.

-- Ratification discussions on Tano 2A block with Ghanaian authorities continue - though the authorities have sought to re-negotiate (to their benefit) at the acreage and fiscal terms previously agreed. A new realism seems evident.

-- Further Australian drill targets are under consideration, especially for gas to serve the dynamic liquified natural gas ("LNG") market.

Chairman's Statement

Recent months have witnessed accelerated field-work on several fronts:

Clontarf teams have conducted further site-visits, sampling and related geological work to deepen our understanding of opportunities and challenges offered by the development of Direct Lithium Extraction technologies.

Our primary focus has been working with the Bolivian authorities, in accordance with applicable laws. This covers both our work on Direct Lithium Extraction technologies, in joint venture with NEXT-ChemX, as well as Clontarf's proposals to explore and develop medium-sized salares. The Bolivian authorities have now confirmed their plan to run a bid-round, as required by law and proper governance, on these high-potential though under-explored salt-lakes. This reflects a vision to develop the world's greatest lithium resource as soon as feasible, to benefit local communities, the authorities, as well as our partners, customers and the road to energy transition.

Our JV partners have completed financings and sub-contractor supply agreements on long-lead time and scarce components. Some components are being enhanced in order to serve anticipated as well as current customer needs. Remaining elements are being shipped to site for final assembly, commissioning and testing.

This progress has brought us to the attention of the EU Commission, as well as State-backed initiatives in Britain and the USA. Clontarf has been invited to participate in a drive to explore and develop lithium and other strategic minerals in northern Argentina, and possibly other jurisdictions. We believe that such timely initiatives may open larger and lower cost sources of equity and debt financings. This would cut our cost of capital and open many new opportunities for value added and expansion.

Subject to applicable laws, Clontarf has offered to participate in a Bolivian Lithium opportunity in partnership with YLB using DLE technology being developed by our technical partner, Next ChemX Corporation.

Every brine is different, and we must ensure that the processing parameters are compatible with the quantity, quality and other parameters of the minerals that are present in the particular brine. This is necessary in order to complete the design of the larger commercial pilot plant specifically made for the selected Bolivian brines.

With all necessary permits, we plan to collect and process larger samples for pilot plant testing, including kinetics calculations, flow-rates, etc.

The NEXT-ChemX process works directly from the brine, and after a quick filtering to ensure there are no solids or debris in the brine we feed into our system. We normally produce pure Lithium Chloride, which we can then convert to battery grade Li(2) CO(3) or LiOH - or possibly Lithium metal for solid state lithium batteries.

This pilot plant testing will enable fine tuning of the process, and determine recovery parameters, as well as operating cost numbers applicable for different brine samples.

This work will help optimise output, demonstrating the effectiveness of the Next ChemX technology and determining throughput and recovery expected at in-situ pilot plants in South America, and possibly elsewhere.

The mobile pilot plant will ideally run for 4 and 6 months, to assess the potential of that location, after which the mobile pilot plant can then be moved and reassembled at another salar. This approach will enable customising of the DLE process for a variety of brine grades and chemistries.

The Clontarf JV, in conjunction with the authorities, under applicable laws, plans to build a full scale processing plant of an agreed capacity to extract production tonnages of Lithium Carbonate, or other desired form of Lithium. We would also assess the viability for the recovery of calcium, magnesium, and potassium chlorides at each location showing attractive flow volumes and recoverable grade. The overall capacity will be scalable via deployment of modular units over a period of months to years.

Each plant can be upgraded to produce value added production, i.e. lithium chloride to lithium carbonate, lithium hydroxide and, if feasible, lithium metal. A similar approach to boosting value added will be implemented for other, economic non-lithium minerals, such as magnesium and potassium.

In oil and gas, the tightening hydrocarbons' supply-demand balance promises a long-overdue revival of exploration and the farm-out market. Shortages of piped gas and LNG feedstock have strengthened long-term prices. The centrality of LNG to fuel any energy transition in Europe and Asia has now been broadly accepted - except for fringe elements - and even by previous sceptics. There can be no reliance on intermittent renewables generation without reliable back-up.

The resurgence of interest in African exploration and development may lead to additional proposals in the coming months. Clontarf continues to insist on strict adherence to our ESG standards.

Clontarf therefore progresses its interests in Bolivia, Australia, Chad and Ghana, maintaining cordial communications with the relevant authorities, and continues to operate efficiently on minimal expenditure.

Funding

Subject to technical verification of its exploration projects, and permitting, Clontarf is confident of securing adequate funding, whether in London or Australia, for near to medium term ongoing activities.

We set out to reduce political and geological risks.

Fortune favours the brave. The best is yet to come.

David Horgan

Chairman

22(nd) September 2023

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

S

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 
 
 
                     CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
                                                                                   Six Months Ended                                                           Year Ended 
                                                                     30 June 23                                  30 June 22                                    31 Dec 22 
                                                                      unaudited                                   unaudited                                      audited 
                                                                        GBP'000                                     GBP'000                                      GBP'000 
 
                     Administrative 
                      expenses                                            (288)                                       (414)                                        (672) 
                     Impairment of 
                      exploration 
                      and evaluation 
                      assets                                                  -                                     (4,095)                                      (4,095) 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
 
                     LOSS BEFORE 
                      TAXATION                                            (288)                                     (4,509)                                      (4,767) 
 
                     Income Tax                                               -                                           -                                            - 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
                     COMPREHENSIVE 
                      INCOME FOR THE 
                      PERIOD                                              (288)                                     (4,509)                                      (4,767) 
                                      =========================================  ==========================================  =========================================== 
 
                     LOSS PER SHARE 
                      - basic and 
                      diluted                                           (0.01p)                                     (0.34p)                                      (0.26p) 
                                      =========================================  ==========================================  =========================================== 
 
 
 
                     CONDENSED 
                     CONSOLIDATED 
                     BALANCE SHEET 
                                                                     30 June 23                                  30 June 22                                    31 Dec 22 
                                                                      unaudited                                   unaudited                                      audited 
                                                                        GBP'000                                     GBP'000                                      GBP'000 
                     ASSETS: 
                     NON-CURRENT 
                     ASSETS 
                     Intangible 
                      assets                                              1,756                                         868                                          868 
                                                                          1,756                                         868                                          868 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
 
                     CURRENT ASSETS 
                     Other 
                     receivables                                              -                                           1                                            - 
                     Cash and cash 
                      equivalents                                           381                                         188                                          932 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
                                                                            381                                         189                                          932 
 
                     TOTAL ASSETS                                         2,137                                       1,057                                        1,800 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
 
                     LIABILITIES: 
                     CURRENT 
                     LIABILITIES 
                     Trade and other 
                      liabilities                                       (1,512)                                     (2,088)                                      (3,027) 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
                                                                        (1,512)                                     (2,088)                                      (3,027) 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
 
                     TOTAL 
                      LIABILITIES                                       (1,512)                                     (2,088)                                      (3,027) 
                     NET ASSETS / 
                      (LIABILITIES)                                         625                                     (1,031)                                      (1,227) 
                                      =========================================  ==========================================  =========================================== 
 
                     EQUITY 
                     Called-up share 
                      capital                                             6,209                                       5,927                                        5,927 
                     Share premium                                       12,737                                      10,985                                       10,985 
                     Share based 
                      payment 
                      reserve                                               354                                         186                                          248 
                     Retained 
                      deficit                                          (18,675)                                    (18,129)                                     (18,387) 
                                      -----------------------------------------  ------------------------------------------  ------------------------------------------- 
                     TOTAL EQUITY                                           625                                     (1,031)                                      (1,227) 
                                      =========================================  ==========================================  =========================================== 
 
 
 
                     CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
                                                                   Called-up                                                                         Share based 
                                                                       Share                                    Share                                    Payment                                    Retained 
                                                                     Capital                                  Premium                                   Reserves                                     Deficit                                     Total 
                                                                     GBP'000                                  GBP'000                                    GBP'000                                     GBP'000                                   GBP'000 
 
                     As at 1 
                      January 2022                                     2,177                                   10,985                                        186                                    (13,620)                                     (272) 
                     Shares issued                                     3,750                                        -                                          -                                           -                                     3,750 
                     Total 
                      comprehensive 
                      income                                               -                                        -                                          -                                     (4,509)                                   (4,509) 
                                     ---------------------------------------  ---------------------------------------  -----------------------------------------  ------------------------------------------  ---------------------------------------- 
                     As at 30 June 
                      2022                                             5,927                                   10,985                                        186                                    (18,129)                                   (1,031) 
 
                     Share based 
                     payment charge                                        -                                        -                                         62                                           -                                        62 
                     Total 
                      comprehensive 
                      income                                               -                                        -                                          -                                       (258)                                     (258) 
                                     ---------------------------------------  ---------------------------------------  -----------------------------------------  ------------------------------------------  ---------------------------------------- 
                     As at 31 
                      December 2022                                    5,927                                   10,985                                        248                                    (18,387)                                   (1,227) 
 
                     Shares issued                                       282                                    1,849                                          -                                           -                                     2,131 
                     Share issue 
                      expenses                                             -                                     (97)                                          -                                           -                                      (97) 
                     Share based 
                     payment charge                                        -                                        -                                        106                                           -                                       106 
                     Total 
                      comprehensive 
                      income                                               -                                        -                                          -                                       (288)                                     (288) 
                                                                                                                       ----------------------------------------- 
                     As at 30 June 
                      2023                                             6,209                                   12,737                                        354                                    (18,675)                                       625 
                                     =======================================  =======================================  =========================================  ==========================================  ======================================== 
 
 
                     CONDENSED 
                     CONSOLIDATED CASH 
                     FLOW                                                               Six Months Ended                                                          Year Ended 
                                                                          30 June 23                                  30 June 22                                   31 Dec 22 
                                                                           unaudited                                   unaudited                                     audited 
                                                                             GBP'000                                     GBP'000                                     GBP'000 
                     CASH FLOW USED IN 
                     OPERATING ACTIVITIES 
                     Loss for the period                                       (288)                                     (4,509)                                     (4,767) 
                     Impairment of 
                      exploration and 
                      evaluation assets                                            -                                       4,095                                       4,095 
                     Share based payment 
                     charge                                                      106                                           -                                          62 
                     Exchange movements                                            2                                           1                                           3 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
                                                                               (180)                                       (413)                                       (607) 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
                     Movements in working 
                     capital 
                     Decrease in other 
                     receivables                                                   -                                           2                                           2 
                     (Decrease)/Increase 
                      in trade and other 
                      payables                                               (1,516)                                         601                                       1,541 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
                                                                             (1,516)                                         603                                       1,543 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
 
                     NET CASH USED IN 
                      OPERATING 
                      ACTIVITIES                                             (1,696)                                         190                                         936 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
 
                     CASH FLOWS USED IN 
                     INVESTING ACTIVITIES 
                     Payments for 
                      intangible assets                                        (406)                                     (4,095)                                     (4,095) 
                     NET CASH USED IN 
                      INVESTING 
                      ACTIVITIES                                               (406)                                     (4,095)                                     (4,095) 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
 
                     CASH FLOW FROM 
                     FINANCING ACTIVITIES 
                     Issue of shares                                           1,650                                       3,750                                       3,750 
                     Share issue expenses                                       (97)                                           -                                           - 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
                     NET CASH GENERATED 
                      FROM FINANCING 
                      ACTIVITIES                                               1,553                                       3,750                                       3,750 
                                           -----------------------------------------  ------------------------------------------  ------------------------------------------ 
 
                     NET 
                      (DECREASE)/INCREASE 
                      IN CASH AND CASH 
                      EQUIVALENTS                                              (549)                                       (155)                                         591 
                     Cash and cash 
                      equivalents at 
                      beginning of the 
                      period                                                     932                                         344                                         344 
                     Exchange loss on 
                      cash and cash 
                      equivalents                                                (2)                                         (1)                                         (3) 
                     CASH AND CASH 
                      EQUIVALENT AT THE OF THE PERIOD                                          381                                         188                                         932 
                                           =========================================  ==========================================  ========================================== 
 
 

Notes:

   1.    INFORMATION 

The financial information for the six months ended 30 June 2023 and the comparative amounts for the six months ended 30 June 2022 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.

The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the U.K. The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2022 Annual Report, which is available at www.clontarfenergy.com

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

   2.    DIVID 

No dividend is proposed in respect of the period.

   3.    GOING CONCERN 

The Group incurred a loss for the period of GBP288,472 (2022: GBP4,766,646) and had net current liabilities of GBP1,130,220 (2022: GBP2,094,612) at the balance sheet date. These conditions, as well as those noted below, represent a material uncertainty that may cast doubt on the Group's ability to continue as a going concern.

Included in current liabilities is an amount of GBP1,450,565 (2022: GBP1,525,565) owed in respect of Directors' remuneration due at the balance sheet date. The Directors have confirmed that they will not seek settlement of these amounts in cash until after the end of 2024.

The Group had a cash balance of GBP381,420 (2022: GBP931,902) at the balance sheet date. As the Group is not revenue or cash generating it relies on raising capital from the public market. On 16 January 2023 the Group raised GBP1,300,000 on a placing and a further GBP350,000 on 1 June 2023. Further information is detailed in Note 7 below.

As in previous years the Directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

   4.    LOSS PER SHARE 

Basic loss per share is computed by dividing the loss after taxation for the year attributable to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

The following table sets out the computation for basic and diluted earnings per share ("EPS"):

 
                                                                         Six Months Ended                                           Year Ended 
                                                            30 June 23                          30 June 22                           31 Dec 22 
                                                               GBP'000                             GBP'000                             GBP'000 
 
                     Loss for the 
                      year 
                      attributable 
                      to equity 
                      holders                                    (288)                             (4,509)                             (4,767) 
                                    ==================================  ==================================  ================================== 
 
                     Denominator                                Number                              Number                              Number 
                     For basic and 
                      diluted EPS                        4,385,660,371                       1,328,908,309                       1,856,031,596 
                                    ==================================  ==================================  ================================== 
 
                     Basic and 
                      diluted EPS                              (0.01p)                             (0.34p)                             (0.26p) 
                                    ==================================  ==================================  ================================== 
 

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.

   5.    INTANGIBLE ASSETS 
 
                                                        30 June                       30 June                        31 Dec 
                                                             23                            22                            22 
                                                        GBP'000                       GBP'000                       GBP'000 
                     Exploration 
                     and 
                     evaluation 
                     assets 
 
                     Cost: 
                     At 1 January                        12,735                         8,640                         8,640 
                     Additions                              888                         4,095                         4,095 
                     Closing 
                      Balance                            13,623                        12,735                        12,735 
                                   ============================  ============================  ============================ 
                     Impairment: 
                     At 1 January                        11,867                         7,772                         7,772 
                     Provision 
                      for 
                      impairment                              -                         4,095                         4,095 
                     Closing 
                      Balance                            11,867                        11,867                        11,867 
                                   ============================  ============================  ============================ 
                     Carrying 
                     value: 
                     At 1 January                           868                           868                           868 
                                   ============================  ============================  ============================ 
                     At period 
                      end                                 1,756                           868                           868 
                                   ============================  ============================  ============================ 
 
 
 
                     Regional                           30 Jun                        30 Jun                            31 
                     Analysis                               23                            22                         Dec22 
                                                       GBP'000                       GBP'000                       GBP'000 
                     Bolivia -                             888                             -                             - 
                     Investment 
                     in JV 
                     Ghana                                 868                           868                           868 
                                  ----------------------------  ----------------------------  ---------------------------- 
                                                         1,756                           868                           868 
                                  ============================  ============================  ============================ 
 
 

Exploration and evaluation assets relate to expenditure incurred in prospecting and exploration for lithium, oil and gas in Bolivia and Ghana. The Directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalised exploration and evaluation assets.

During 2018 the Group resolved the outstanding issues with the Ghana National Petroleum Company ("GNPC") regarding a contract for the development of the Tano 2A Block. The Group has signed a Petroleum Agreement in relation to the block and this agreement awaits ratification by the Ghanian government.

The Company is in negotiations with the Vice-Ministry of Electrical Technologies and the State Lithium Company in Bolivia on exploration and development of salt-lakes in accordance with law. Samples have been analysed and process work is underway.

On 15 February 2023 the Company announced a heads of agreement around the potential formation of a 50:50 Joint Venture with US based, OTC Markets traded, technology company, NEXT-ChemX Corporation ("NCX") covering testing, marketing, and deploying of NCX's proprietary (patent pending) direct lithium ion extraction ("DLE") technology in Bolivia. Formation of the JV was subject to final due diligence and the parties entering into formal documentation.

On 5 May 2023 the Company announced that all conditions precedent had been satisfied with respect to the JV with NEXT-ChemX coming into force. In this regard, Clontarf paid NEXT-ChemX Corporation US$500,000 and has issued to NEXT-ChemX 385 million new Ordinary Shares in the capital of Clontarf of which half are subject to a 12-month lock in requirement.

The Directors believe that there were no facts or circumstances indicating that the carrying value of intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the Directors. The realisation of these intangibles assets is dependent on the successful discovery and development of economic deposit resources and the ability of the Group to raise sufficient finance to develop the projects. It is subject to a number of potential significant risks, as set out below.

The Group's activities are subject to a number of significant potential risks including:

   --        licence obligations; 
   --        exchange rate risks; 
   --        uncertainties over development and operational costs; 

-- political and legal risks, including agreements with Governments for licences, profit sharing and taxation;

-- foreign investment risks including increases in taxes, royalties and renegotiation of contracts;

   --        title to assets; 
   --        financial risk management; 
   --        going concern; and 
   --        ability to raise finance. 
   6.    TRADE AND OTHER PAYABLES 
 
                                                     30 June                       30 June                        31 Dec 
                                                          23                            22                            22 
                                                     GBP'000                       GBP'000                       GBP'000 
                     Creditor 
                      - 
                      Western 
                      Gas                                  -                           550                           553 
                     Trade 
                      payables                            35                            48                            57 
                     Other 
                      payables                         1,451                         1,480                         1,526 
                     Cash 
                      received 
                      in 
                      advance 
                      of share 
                      placing                              -                             -                           870 
                     Related 
                      parties                             13                             -                             5 
                     Other 
                      accruals                            12                            10                            16 
                                ----------------------------  ----------------------------  ---------------------------- 
                                                       1,511                         2,088                         3,027 
                                ============================  ============================  ============================ 
 

Other payables relate to amounts due to Directors and a former Director for remuneration accrued but not paid at period end.

   7.    SHARE CAPITAL 
 
 Deferred Shares - nominal value of 0.24p 
                                                Number   Share Capital   Share Premium 
                                                               GBP'000         GBP'000 
 At 1 January 2022                                   -               -               - 
                                        --------------  --------------  -------------- 
 At 30 June 2022                                     -               -               - 
 Transfer from ordinary shares           2,370,826,117           5,690               - 
                                        --------------  --------------  -------------- 
 At 31 December 2022 and 30 June 2023    2,370,826,117           5,690               - 
                                        ==============  ==============  ============== 
 
 Ordinary Shares - nominal value of 0.01p 
 Allotted, called-up and fully paid: 
                                                Number   Share Capital   Share Premium 
                                                               GBP'000         GBP'000 
 
 At 1 January 2022                         870,826,117           2,177          10,985 
 Issued during the period                1,500,000,000           3,750               - 
 At 30 June 2022                         2,370,826,117           5,927          10,985 
 
 Transfer to deferred shares                                   (5,690)               - 
                                        --------------  --------------  -------------- 
 At 31 December 2022                     2,370,826,117             237          10,985 
 
 Issued during the period                2,822,500,000             282           1,849 
 Share issue expenses                                -               -            (97) 
                                        --------------  --------------  -------------- 
 At 30 June 2023                         5,193,326,117             519          12,737 
                                        ==============  ==============  ============== 
 
 

On 4 August 2022 the 2,370,826,117 issued ordinary shares of 0.25p each were subdivided via ordinary resolution into 2,370,826,117 ordinary shares of 0.01p each and 2,370,826,117 deferred shares of 0.24p each.

Movements in issued share capital

On 16 January 2023 the Company raised GBP1,300,000 via a placing of 2 billion new ordinary shares of 0.01p each, via several Australian based brokers, at a price of 0.065p per share. In connection with the placing 97,500,000 warrants were issued to the brokers involved in the placing. Further information is detailed in Note 8 below. The proceeds were used to advance the Company's lithium projects in Bolivia, and petroleum projects in Ghana, Australia, and elsewhere.

On 5 May 2023 as part of the Joint Venture agreement with NEXT-ChemX the Company issued 385 million ordinary shares of 0.01p each at a price of 0.125p to NEXT-ChemX. Further information is detailed in Note 5 above.

On 1 June 2023 the Company raised GBP350,000 via a placing of 437,500,000 ordinary shares of 0.01p each at a price of 0.08p per share. Proceeds raised will be used to provide additional working capital and fund developments costs.

   8.    SHARE BASED PAYMENTS 

SHARE OPTIONS

The Group issues equity-settled share-based payments to certain Directors and individuals who have performed services for the Group. Equity-settled share-based payments are measured at fair value at the date of grant.

Fair value is measured by the use of a Black-Scholes model.

The Group plan provides for a grant price equal to the average quoted market price of the ordinary shares on the date of grant.

 
                                                                      30 Jun 23                                                    30 Jun 22                                                     31 Dec22 
                                                        Options                       Weighted                       Options                       Weighted                       Options                       Weighted 
                                                         Number                        average                        Number                        average                        Number                        average 
                                                           '000                       exercise                          '000                       exercise                          '000                       exercise 
                                                                                      price in                                                     price in                                                     price in 
                                                                                         pence                                                        pence                                                        pence 
                     At 1 January                        40,500                            0.7                        40,500                            0.7                        40,500                            0.7 
                     Issued                             160,000                         0.0725                             -                                                            - 
                                   ----------------------------  -----------------------------  ----------------------------  -----------------------------  ----------------------------  ----------------------------- 
                     Outstanding 
                      at end of 
                      period                            200,500                           0.20                        40,500                            0.7                        40,500                            0.7 
                                   ----------------------------  -----------------------------  ----------------------------  -----------------------------  ----------------------------  ----------------------------- 
                     Exercisable 
                      at end of 
                      period                            200,500                           0.20                        30,500                            0.7                        40,500                            0.7 
                                   ============================  =============================  ============================  =============================  ============================  ============================= 
 

On 17 January 2023 a total of 160,000,000 options were granted with a fair value of GBP106,632 to Directors and individuals who have performed services for the Group. These fair values were calculated using the Black-Scholes valuation model.

The inputs into the Black-Scholes valuation model were as follows:

Grant 17 January 2023

   Weighted average share price at date of grant (in pence)                                      0.07p 

Weighted average exercise price (in pence) 0.0725p

Expected volatility

144.39%

Expected life

7 years

Interest free rate

5%

Expected dividends none

Expected volatility was determined by management based on their cumulative experience of the movement in share prices. The terms of the options granted do not contain any market conditions within the meaning of IFRS 2.

The Group capitalised expenses of GBPNil (2022: GBPNil) and expensed costs of GBP106,632 (2022: GBP61,695) relating to equity-settled share-based payment transactions during the year.

Warrants

 
                                                                       30 Jun 23                                                     30 Jun 22                                                     31 Dec22 
                                                        Warrants                       Weighted                       Warrants                       Weighted                       Warrants                       Weighted 
                                                          Number                        average                         Number                        average                         Number                        average 
                                                            '000                       exercise                           '000                       exercise                           '000                       exercise 
                                                                                       price in                                                      price in                                                      price in 
                                                                                          pence                                                         pence                                                         pence 
                     At 1 January                        435,683                           0.25                              -                              -                              -                              - 
                     Issued                               97,500                          0.065                        435,683                           0.25                        435,683                           0.25 
                                   -----------------------------  -----------------------------  -----------------------------  -----------------------------  -----------------------------  ----------------------------- 
                     Exercisable 
                      at end of 
                      period                             533,183                           0.22                        435,683                           0.25                        435,683                           0.25 
                                   =============================  =============================  =============================  =============================  =============================  ============================= 
 

On 16 January 2023 in connection with the share placing a total of 97,500,000 warrants were issued to the brokers involved with the placing. The warrants have an exercise price of 0.065p.

   9.    POST BALANCE SHEET EVENTS 

On 1 August 2023 the Company announced that the following long-term, incentive share options have been granted over, in aggregate, 300,000,000 ordinary shares of 0.01p each in the Company. The Options vest immediately, have an exercise price of 0.10p and an expiry date of 30th July 2030.

The Options have been awarded as follows:

 
                  Number of Options Granted 
 David Horgan                   115,000,000 
 James Finn                      75,000,000 
 Peter O'Toole                   75,000,000 
 Dipti Mehta                     35,000,000 
 

10. The Interim Report for the six months to 30 June 2023 was approved by the Directors on 22 September 2023.

11. The Interim Report will be available on the Company's website at www.clontarfenergy.com .

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END

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(END) Dow Jones Newswires

September 25, 2023 02:00 ET (06:00 GMT)

Clontarf Energy (LSE:CLON)
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