“`html
In a significant move towards advancing lithium production, CleanTech Lithium PLC (traded on AIM as CTL and Frankfurt as T2N) has officially submitted its application for a Special Lithium Operating Contract, commonly referred to as the CEOL, for its Laguna Verde project. This submission was made through its Chilean subsidiary, Atacama Salt Lakes SpA (ASL). Notably, the application was filed well ahead of the looming deadline, demonstrating the company’s proactive approach in securing its position in the emerging lithium market.
The CEOL, once awarded, will grant the recipient the rights to commercially extract lithium from the specified site for the project’s economic lifespan. This is a crucial aspect of CleanTech’s long-term strategy, aligning with the growing demand for lithium in the renewable energy sector.
Table of Contents:
Application highlights and strategic partnerships
ASL’s submission adheres to the criteria set forth by the Chilean Ministry of Mining, which has outlined specific requirements for potential CEOL applicants. Key highlights of the application include:
- ASL controls more than 80% of the mining concessions within the CEOL-defined polygon area.
- A consortium partner has been secured to support the application, enhancing CleanTech’s financial credibility.
- The application was submitted significantly before the deadline, allowing for a thorough review process by the Ministry of Mining.
- CleanTech is preparing to finalize a Pre-Feasibility Study (PFS) for Laguna Verde, which will be published soon after entering direct negotiations.
- Legal disputes concerning certain licenses related to Laguna Verde will not hinder ASL’s CEOL application.
In line with the criteria established by the Chilean government, applicants must demonstrate ownership of at least 80% of the mining concessions in the designated area, relevant industry experience, and a minimum accounting equity of USD $30 million. CleanTech is confident that it meets these requirements, holding over 97% of the necessary concessions.
Strengthening financial capabilities
To bolster its financial standing, ASL has partnered with a reputable minerals company, which remains unnamed. This partnership not only satisfies the financial prerequisites set by the government but also includes an agreement for the partner to acquire a minimal minority stake in ASL at the time of the CEOL award. This strategic move is designed to enhance CleanTech’s position while keeping control over the majority of the project.
The consortium partner also serves as a joint guarantor for the project’s financial obligations, ensuring that CleanTech can confidently move forward. This collaboration illustrates CleanTech’s commitment to forming alliances that support its operational goals, particularly as it aims for a successful transition into the lithium market.
Future outlook and project development
Looking ahead, the company is optimistic about receiving feedback on its application soon. Ignacio Mehech, the Chief Executive Officer of CleanTech Lithium, expressed confidence in the company’s application, stating, “We believe we are the only eligible applicant for the CEOL at Laguna Verde under the Ministry’s streamlined process.” Mehech emphasized the importance of having substantial ownership of mining concessions and a solid financial backing, which positions CleanTech favorably in this competitive landscape.
Furthermore, the company is keenly aware of the legal challenges surrounding certain licenses but maintains that these issues will not affect the CEOL application. The licenses in question are held by a separate subsidiary and do not impact the required ownership threshold for the concessions.
Preparing for strategic partnerships
Assuming CleanTech is granted entry into direct negotiations, preparations for the PFS for Laguna Verde are well underway. This study, being conducted by the globally recognized engineering firm Worley, will detail the operational and economic factors essential for developing a sustainable lithium project utilizing low-impact extraction technologies.
In the coming months, CleanTech anticipates engaging in more substantive discussions with potential strategic partners, further enhancing its development capabilities. The company remains committed to keeping the market informed of its progress and any significant developments.
In summary, CleanTech Lithium stands at a pivotal moment in its journey toward the successful development of the Laguna Verde lithium project. With its application submitted and strong partnerships in place, the company is well-positioned to meet the growing demand for lithium in the clean energy transition.
“`